DoJ Takes Action Against HPE's Juniper Acquisition

The United States Department of Justice (DoJ) has filed a lawsuit to prevent Hewlett Packard Enterprise Company (HPE) from acquiring Juniper Networks Inc., citing significant antitrust concerns. Acting Assistant Attorney General Omeed Assefi emphasized the potential negative impacts of the $14 billion deal, stating it could lead to higher prices, reduced innovation, and fewer choices for American businesses, consolidating the market under the control of HPE and Cisco Systems Inc.

HPE had announced its intention to acquire Juniper Networks in January of the previous year, aiming to double its networking business and position itself as a leader in an AI-native environment. However, following the DoJ's announcement, HPE's stock price fell by 3.05% to $20.99, and Juniper Networks' shares dropped by 3.10% to $34.05 by 12:30 pm ET.