The Competition and Markets Authority (CMA) said the deal raises competition worries in the supply of semiconductor chip design and light-simulation products in the UK.
The watchdog said the merger could reduce choice for customers and lead to a loss of innovation, lower quality software, and higher prices which might be passed onto UK businesses and consumers.
“Semiconductor chips are crucial components in technologies used every day by UK consumers and also in key sectors including artificial intelligence and cloud computing,” the CMA said.
It added that if the companies did not submit suitable proposals to address the concerns, it would progress to an in-depth probe of the merger.
A Synopsys spokesperson said the company had already taken steps to address all the concerns raised by the CMA, and its plans included the sale of its optical solutions…
