China's market regulator has conditionally approved U.S. chip design software provider Synopsys' acquisition of engineering design firm Ansys, clearing the last significant regulatory obstacle for the $35 billion buyout.

Synopsys stock was rising in premarket trading Monday after the chip-design software company received conditional regulatory approval from China to move forward with its $35 billion acquisition of Ansys.

Synopsys Inc. has secured China’s approval to buy out Ansys Inc. for $35 billion, a major win for a company regarded as key to helping sustain US dominance of certain aspects of semiconductor technology.