China approves Synopsys’ $35 bln Ansys acquisition

Published 14/07/2025, 07:30
© Reuters

Investing.com-- China’s market regulator has provided conditional approval to Synopsys (NASDAQ:SNPS) for its $35 billion acquisition of Ansys (NASDAQ:ANSS), clearing a key regulatory hurdle for the U.S. chip-design software giant

The approval includes conditions barring Synopsys from ending existing customer contracts or denying renewal requests from Chinese clients, China’s State Administration for Market Regulation (SAMR) said on Monday.

The approval comes amid improving trade ties between Beijing and Washington, after they agreed to lower their respective import tariffs in June. The approval of the deal was initially delayed by Beijing amid a bitter trade war with the U.S. earlier this year.

But Washington recently relaxed some restrictions on the export of chipmaking software and materials to China, effectively reopening the Chinese market for Synopsys and its peers. China welcomed the move, relaxing its own export controls on rare earths.

Markets had flagged China as the only remaining obstacle for the deal after Synopsys and Ansys had already received merger clearance from authorities in the United States, European Union, and the UK.

The green light from Beijing clears the path for Synopsys to consolidate its dominance in chip-design software.

Synopsys shares have rallied in recent days as the U.S. relaxed export restrictions on chip-design software to China.

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