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South Korea's antitrust regulator said on Wednesday that it has launched a review of chip design software giant Synopsys’ proposed acquisition of engineering software firm Ansys.

The US-based software maker said in January that it struck a $35 billion deal to buy Ansys, an American firm that makes software used to simulate and analyse product designs for electronics manufacturers and carmakers, among others, reports Yonhap news agency.

"We will carefully assess whether the proposed transaction would negatively affect competition or hamper innovation in the sector in accordance with due standards and processes under the Fair Trade Act," the Fair Trade Commission (FTC) said in a release.

"We will closely cooperate with foreign regulators and listen to opinions from competitors and other stakeholders at home and abroad over the course of our deliberation," it added.

The regulator will review the deal for 30 days, and the review period can be extended to 90 days.

If finalised, it will be the biggest acquisition in the technology sector since chipmaker Broadcom's takeover of software maker VMware in 2023.