McGuireWoods partner Matthew Hall was featured in an Equity Report article discussing the U.K. Competition and Markets Authority’s (CMA) preliminary review of the proposed $35 billion acquisition of Ansys by Synopsys. The CMA’s review, which will likely align with ongoing investigations by the U.S. Federal Trade Commission and the European Commission, signals additional scrutiny for this significant merger in the tech industry, Hall said.
“The case is certain to be formally investigated by the UK CMA,” Hall remarked. “It is inviting third party comments prior to starting the formal investigation, which is now quite common in difficult cases.”
Hall noted that the lengthy pre-notification phase suggests that the merger raises multiple potential concerns. “A Phase 2 review is likely unless remedies are agreed at the end of the Phase 1 review,” he said. “Any remedies will have to be coordinated worldwide due to the [global] nature of the businesses.”
Considering the process so far and the potential duration of a UK CMA investigation, closing the transaction in the first half of 2025 “seems ambitious but possible if remedies are offered in Phase 1,” Hall said in the Sept. 5, 2024, article titled “Timing of CMA review for Synopsys/Ansys merger likely to align with US process, say UK antitrust sources.”