CMA‑Reviewed M&A Deals: 70% Abandonment Rate Over the Past Three Years

Adobe’s $20 B Figma Grab: The CMA’s Red‑flag & What It Means for UK Deals

Picture this: Adobe, the giant behind Photoshop and Illustrator, wants a $20 billion buy‑out of Figma, the slick design platform that teams love. The UK’s watchdog, the Competition & Markets Authority (CMA), isn’t buying what it’s hearing.

Why the CMA’s Up in Arms

“Elimination of competition” – Figma would vanish from the market, leaving Adobe’s cousins in the sun.

“Reduction in innovation” – A single company wielding a lot of tech power could stifle fresh ideas.

Figma’s exit would let Adobe cruise past its rivals, Photoshop and Illustrator, without a fair contest.

Bottom line: The preliminary CMA report raises a red‑flag, but it’s not the final verdict yet. The deal is already on DOJ’s and the EU’s radar, and if the CMA cuts it down, the entire shape‑up of the transaction could change.

Claire Trachet Weighs In

Business guru Claire Trachet (CEO, Trachet Advisory) says the CMA’s new powers could turn the UK into an “M&A graveyard.” She points out that the regulator, like a stern teacher, made three times as many deals fail compared with the EU’s 2018‑2020 rulings.

Key Take‑Aways From Her Insights

The CMA’s past moves, such as blocking Ineos’ buy of Sika, paint a picture of an organization doing business = “pain in the neck”.

Blockades could dent the UK’s future appeal as a hotspot for tech mergers, driving firms to the EU where the vibe feels smoother.

A combined $4 trillion UK M&A pie might get “halved” if deal‑blocking continues, meaning jobs and innovation feel a chill.

Adobe & Figma Face‑to‑Face with the Judge

Both parties are shrugging it off. Figma argues it ain’t a direct rival to Adobe – “we’re disrupting the whole design play‑field.” Adobe, meanwhile, says the bundle brings “massive value” to customers and will keep talking to the CMA until everyone’s happy.

What’s the Bottom Line for the UK’s Deal Scene?

It’s a mixed verdict. On the one hand, the CMA is tightening the screws on cross‑border deals; on the other, they’ve shown a willingness to green‑light big names like Microsoft‑Activision. The industry’s watchful. If the CMA decides to nix the Adobe‑Figma merger, it could deepen the perception that the UK is a less friendly place for big‑tech love‑in‑paradigm. And that’s something investors dread.

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