Synopsys, Inc. (SNPS.US) and ANSYS, Inc. (ANSS.US) reached a preliminary remediation plan with Chinese regulatory authorities.

According to reports, Synopsys, Inc. (SNPS.US) plans to acquire ANSYS, Inc. (ANSS.US) for $35 billion, and has reached a preliminary agreement with the Chinese antitrust regulatory agency on initial remedies. The remedial measures are expected to include divesting Synopsys, Inc.'s optical solutions division and ANSYS, Inc.'s PowerArtist assets to Keysight (KEYS.US). Reports indicate that even with progress in the remedial negotiations, whether the deal will ultimately be approved in China still depends on the improvement of US-China relations. As a result of this news, the spread on the deal narrowed from $36.79 on Wednesday to $32.47. This transaction received approval from the UK antitrust regulatory agency in March and from the EU in January. In January 2024, Synopsys, Inc. agreed to acquire ANSYS, Inc. for $35 billion in cash and stock. Under the terms of the deal, ANSYS, Inc. shareholders will receive $197 in cash and 0.3450 shares of Synopsys, Inc. common stock.