February 23, 2017 / 3:20 PM / 3 years ago

Siemens set to win EU approval for $4.5 billion Mentor deal - sources

Siemens AG headquarters are seen in Munich, Germany August 15, 2016. REUTERS/Michaela Rehle -

BRUSSELS/FRANKFURT (Reuters) - German engineering group Siemens (SIEGn.DE) is set to gain unconditional EU antitrust approval for its $4.5 billion (4 billion pound) bid for U.S. software company Mentor Graphics, its biggest deal in this area in a decade, two people familiar with the matter said on Thursday.

Siemens unveiled the deal in November last year, aiming to boost its presence in a sector with faster growth and bigger margins than other areas.

The German company’s move comes in response to growing customer demand for more complex software for smart connected products such as aeroplanes, trains and cars. Siemens is targeting a rise in its software revenue by about a third from the deal.

Mentor Graphics’ software helps semiconductor companies design and test their chips before they manufacture them.

The European Commission, which is scheduled to decide on the deal by Feb. 27, declined to comment. Siemens also declined to comment.

Mentor Graphics competes with Synopsys (SNPS.O) and Cadence (CDNS.O).

Reporting by Foo Yun Chee in Brussels and Arno Schuetze in Frankfurt, additional reporting by Jens Hack in Munich. Editing by Jane Merriman

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