UK Competition And Markets Authority Has Provisionally Found That The Anticipated Acquisition By Adobe Of Figma May Be Expected To Result In A Substantial Lessening Of Competition
Portfolio Pulse from Charles Gross
The UK Competition and Markets Authority (CMA) has provisionally found that Adobe's planned acquisition of Figma could lead to a substantial lessening of competition. This preliminary finding may impact the final approval of the deal.
November 28, 2023 | 12:09 pm
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Adobe's anticipated acquisition of Figma faces provisional scrutiny from the UK CMA for potentially reducing competition, which could affect the deal's progress and Adobe's expansion plans.
The provisional findings by the UK CMA suggest that there could be regulatory hurdles ahead for Adobe's acquisition of Figma. This could delay or even prevent the deal from going through, which may negatively impact Adobe's stock price in the short term as the market reacts to potential regulatory challenges.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
The UK CMA's provisional findings on Adobe's acquisition of Figma may have a minor impact on the EWU ETF, which tracks the UK market, due to potential implications for competition in the UK software industry.
While the CMA's findings are specific to Adobe and Figma, they may have a broader impact on the UK software market. However, since EWU is a diversified ETF, the direct impact on its performance is likely to be limited unless the situation escalates to affect the broader market.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 30