Software maker Adobe’s (NASDAQ:ADBE) much-awaited acquisition of cloud-based designer Figma seems to be in jeopardy. A Reuters report suggests that the European Commission is preparing a statement of objections to oppose the deal. The European watchdog’s antitrust warning is expected soon, and Adobe will need to offer remedies to justify the deal.
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The European Commission is set to release a statement of objections, stating why the acquisition is deemed anti-competitive. The European Union’s (EU) competition watchdog initiated a full-blown investigation into Adobe’s $20 billion deal in August. The EU states that acquiring Figma will thwart competition in the interactive product design tools market.
In response to the objections raised, Adobe and Figma are expected to provide detailed remedies to address the concerns. The European Commission has set February 5, 2024, as the deadline to finish the probe and give its final verdict. Similarly, the U.K.’s Competition and Markets Authority (CMA) has set an extended deadline of February 25, 2024, to finish its investigation of the deal.
Is Adobe a Good Stock to Buy Right Now?
On TipRanks, analysts have assigned a Moderate Buy consensus rating to Adobe stock. This is based on 20 Buys, seven Holds, and one Sell rating. Also, the average Adobe price forecast of $612.17 implies 1.3% upside potential from current levels. Year-to-date, ADBE stock has gained 79.4%.
