M&A News: Synopsys Stock (SNPS) Slumps as Chinese Put Freeze on $35B Ansys Merger

Shares in electronic design automation firm Synopsys (SNPS) slumped 2% today, as Chinese regulators put the brakes on its proposed $35 billion merger with peer Ansys (ANSS).

Trump is Blamed

According to a report in the Financial Times, the Chinese State Administration for Market Regulations has postponed its approval of the deal between the two U.S. firms which was first announced in early 2024.

The transaction had already entered the last stage of the Chinese regulator’s approval process and was expected to be completed by the end of this month.

However, President Trump’s decision to apply additional export controls on shipments of semiconductor design software from companies such as Synopsys, jet engines for Chinese-made planes and other goods in May is believed to have led to the decision being postponed.

The deal has already received the green light from all other jurisdictions including the EU. The Federal Trade Commission (FTC) in the U.S. recently gave its conditional approval but said Synopsys and Ansys had to divest certain assets to Keysight Technologies to address antitrust concerns.

Drop Dead Deadline

Synopsys had hoped the deal would create a leader in silicon to systems design solutions and help it attack a $28 billion market.

But the deal is still alive given that there is a “drop dead” deadline of January 15, 2026 to get it over the line.

It is also possible that approval could go ahead if Synopsys, which provides design tools and IP used by chip giants like Nvidia (NVDA), manages to ease Chinese regulators’ concerns with workable remedies.

A breakthrough could also be made during U.S. and Chinese trade talks.

Is SNPS a Good Stock to Buy Now?

On TipRanks, SNPS has a Strong Buy consensus based on 11 Buy and 1 Hold ratings. Its highest price target is $685. SNPS stock’s consensus price target is $598.58 implying a 20.93% upside.

See more SNPS analyst ratings