US Department of Justice Intervenes in HPE's Juniper Networks Acquisition

In a significant move, the United States Department of Justice (DoJ) has initiated legal action to prevent Hewlett Packard Enterprise Company (HPE) from acquiring Juniper Networks Inc., citing serious antitrust concerns. This $14 billion deal, announced by HPE in January last year, aims to significantly bolster its networking business and position the company as a leader in an AI-native environment.

Acting Assistant Attorney General Omeed Assefi emphasized the competitive risks, stating, "HPE and Juniper are successful companies. But rather than continue to compete as rivals in the WLAN marketplace, they seek to consolidate — increasing concentration in an already concentrated market." The DoJ argues that the merger would lead to higher prices, reduced innovation, and fewer choices for American businesses, potentially leaving only HPE and Cisco Systems Inc. to dominate over 70% of the market.

Following the DoJ's announcement, HPE's stock experienced a 3.05% drop, settling at $20.99 by 12:30 pm ET, while Juniper Network's shares fell by 3.10% to $34.05.