HPE, Juniper in High-Stakes Talks with DOJ Over Antitrust Concerns

Hewlett Packard Enterprise Co. (HPE) and Juniper Networks Inc. are actively engaging with the U.S. Department of Justice (DOJ) to address antitrust concerns surrounding their proposed $14 billion merger. According to Bloomberg, representatives from both companies recently met with DOJ officials in a high-stakes effort to prevent a potential legal challenge to the deal.

The DOJ has expressed apprehension that the merger could diminish competition in the networking equipment sector, particularly affecting industry leader Cisco Systems Inc. While smaller firms also operate in this market, the DOJ views HPE and Juniper as significant innovators whose combination might reduce competitive pressures on Cisco, per Bloomberg.

Despite these concerns, HPE and Juniper have been cooperating with regulators throughout the review process. HPE’s Chief Executive Officer, Antonio Neri, previously stated that he sees no reason why the deal wouldn’t proceed, emphasizing the potential benefits for customers through improved product offerings and increased innovation.

Related: UK Clears HPE’s $14 Billion Juniper Networks Acquisition

The merger has already received unconditional approval from the European Commission, which concluded that the deal would not significantly impede competition in various networking markets. However, the DOJ has prepared a complaint and is ready to challenge the merger if the companies attempt to finalize it soon, according to Bloomberg.

A final decision on whether to file a lawsuit will be made by senior officials appointed by the Trump administration, which has reversed some decisions made by its predecessors in the Biden Justice Department. The merger agreement between HPE and Juniper extends through October 2025, providing time for further negotiations and potential adjustments to address regulatory concerns.