Fair Trade Commission Approves Ansis-Humanetics Merger... "No Control Relationship Formed"

Vertical Integration Between Collision Simulation Software and Crash Test Dummy Companies

[Image source=Yonhap News]

The Korea Fair Trade Commission announced on the 19th that it has approved the business combination in which Ansys acquires 34.68% of the shares of Safe Parent, the owner of Humaneatics.

Ansys is a multinational company headquartered in the United States and a leading company in the field of engineering simulation software. It supplies LS-DYNA, software used by major global automobile manufacturers such as Hyundai Motor Company for vehicle crash simulation analysis.

Humaneatics is also headquartered in the United States and leads the market for Anthropomorphic Test Devices (ATD), known as crash test dummies, as well as the market for virtual digital ATD models.

The digital ATD is used in virtual crash tests through vehicle crash simulation software such as Ansys's LS-DYNA.

The Fair Trade Commission judged that Ansys's "crash simulation software" and Humaneatics's "digital ATD" have a vertical integration relationship and first examined whether Ansys can exercise substantial influence over Humaneatics's overall management through the share acquisition.

The examination revealed that even after the share acquisition, Ansys remains only the second-largest shareholder of Humaneatics, and Bridgepoint Group, which holds a majority stake, still retains rights over board composition and overall management as the largest shareholder.

Accordingly, the Fair Trade Commission approved the business combination, concluding that no controlling relationship over Humaneatics will be formed after Ansys's share acquisition.

The Fair Trade Commission stated, "If there is any change in the control relationship between the two companies in the future, we plan to closely examine whether it restricts competition."