The US Department of Justice (DOJ) has filed an antitrust lawsuit to block Hewlett Packard Enterprise’s ($14 billion deal to acquire networking gear maker Juniper Networks, citing concerns that the acquisition would reduce competition in the market.
The DOJ alleges that the deal would eliminate competition and leave only two companies – Cisco Systems and HPE – controlling more than 70% of the US market for networking equipment. In response, HPE and Juniper Networks have denied the claims, stating that their merger will bring together complementary offerings to compete with global incumbent players.
HPE has argued that Juniper’s innovative tools have forced it to discount its own products and invest in new features under the “Beat Mist” campaign. The firms claim they will defend the deal, with the pretrial process expected to last around 8 months before an absolute walk-away date in October.
Notably, the UK’s Competition and Markets Authority and the European Union have already cleared the deal, providing some assurance for HPE and Juniper Networks.
Source: https://www.reuters.com/markets/deals/us-doj-sues-block-hewlett-packard-enterprises-14-bln-juniper-deal-2025-01-30