Synopsys (SNPS) said Friday that it remains confident in a positive outcome of the UK Competition and Markets Authority's review of the proposed acquisition of Ansys (ANSS), and continues to expect the transaction to close in H1 of 2025.

The regulator said in its phase 1 findings Friday that the merger "could lead to a loss of innovation, lower quality software, and/or higher prices, which may then be passed onto UK businesses and consumers."

Synopsys said the CMA's announcement was an "expected step" in the UK regulatory review process, and that the company has already taken steps to address its concerns, including a sale of its optical solutions business to Keysight.

"We will continue our constructive and collaborative engagement with the CMA in relation to our proposed remedies," the company said.

Synopsys and Ansys shares were down more than 2% and 1%, respectively, in recent Friday premarket activity.