Ansys barred from partaking in Humanetics' virtual crash tests domestically

The German Federal Cartel Office has competition concerns about the US company Ansys acquiring 35% of Safe Parent, which is also based in the USA. Ansys develops, among other things, simulation software for crash tests with occupant protection, while Safe Parent produces physical and virtual anthropomorphic test devices, also known as crash test dummies, under the Humanetics brand. Due to these concerns, Ansys has withdrawn its application to acquire a minority stake. The proceedings therefore end without a formal decision by the Federal Cartel Office, "the merger may therefore not be completed", according to a statement.

"Both companies offer necessary products for crash test simulations and have dominant market positions in these business areas," said Andreas Mundt. His office examined the extent to which the companies compete, their products are complementary and the merger could influence the competitive situation. Even the acquisition of the minority stake would significantly weaken competition and further strengthen the market dominance of the parties, Mundt explained.

"Dominant market position would be further strengthened"

Ansys primarily offers engineering simulation software, including "LS-DYNA", which the automotive industry uses to simulate crash tests with occupant protection. "Humanetics is the only company worldwide to offer both physical and virtual dummies and has a very strong market position in both areas," writes the Bundeskartellamt. Ansys' dominant market position would be further strengthened together with Humanetics' products. Following the acquisition of the minority shareholding, the companies could be tempted to hinder competition by tying their products and implementing further joint foreclosure strategies.

For merger control in Germany, it is not relevant whether the companies involved have a branch in this country, a spokesperson for the Federal Cartel Office explained to heise online. The decisive factor is that the companies are active on the German market. For merger control, the conditions in this country would be examined, which may be different to those in South Korea, for example. The regulatory authority there had no objections to the minority shareholding. The German Federal Cartel Office will also monitor whether the prohibition of the merger is complied with in Germany alone.

In January of this year, Ansys agreed with the associated company Bridgepoint to take over the latter's 34.68 percent stake in Humanetics. A press release stated that the two companies had already cooperated beforehand. Together, they want to strengthen the "human safety engineering ecosystem" in future and combine physical and virtual safety products with digital twins. With the help of LS-DYNA and the ergonomics software RAMSIS developed by Humanetics, the two companies also want to expand their offering for "human-centered product design" for vehicle interiors.

(anw)