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Merger Notification Withdrawn in Crash Test Dummy Industry Due to Competition Concerns

22.07.2024 | 🇩🇪 German competition authority

Ansys Inc. has withdrawn its notification of acquiring a minority shareholding in Safe Parent Inc. after competition concerns raised by the Bundeskartellamt due to their dominant positions in crash simulation software and physical and virtual crash test dummies.


Ansys Inc., a US-based company, withdrew its notification to acquire a just under 35% minority shareholding in Safe Parent Inc., known for its 'Humanetics' brand, following competition concerns raised by the Bundeskartellamt. Ansys specializes in simulation software for crashes with occupant protection, while Humanetics is a leading provider of physical and virtual crash test dummies.

The Bundeskartellamt found that the merger would significantly lessen competition and strengthen the market dominance of both companies, as they offer essential products for crash simulations and hold dominant positions in their respective fields. The withdrawal of the notification prevented adverse effects on competition in the crash test dummy industry.

The merger project underwent extensive investigations in second-phase merger control proceedings, including surveys of customers and competitors, and analysis of internal communications. Ansys focuses on engineering simulation software like 'LS-DYNA' for crash simulations, while Humanetics is the sole provider of physical and virtual crash test dummies globally.

The merger would have further solidified Ansys's dominance in crash simulation software and Humanetics's position in physical and virtual crash test dummies. Economic analyses indicated that the concentration could lead to impeding competitors through tying and joint foreclosure strategies, hindering potential competition in the market.

As the notification was withdrawn, the Bundeskartellamt concluded the proceeding without a formal decision, rendering the merger unimplementable. The case summary will be available on the Bundeskartellamt's website for further information.

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