UK Clears HPE’s $14 Billion Juniper Networks Acquisition

Hewlett Packard Enterprise (HPE) has received clearance from the U.K.’s Competition and Markets Authority (CMA) for its $14 billion acquisition of Juniper Networks Inc., a significant step towards bolstering its position in the networking sector. According to Bloomberg, the CMA announced on Wednesday that it had completed its investigation, concluding that the deal would not result in a substantial lessening of competition in the U.K.

The approval by the U.K. regulator follows a similar decision by the European Union last week, which also determined that the acquisition did not pose any competition concerns within the markets it examined. However, the acquisition still faces scrutiny in the United States, where the Department of Justice (DOJ) has issued a second request for further information as part of its review process.

Read more: UK Watchdog Probes HPE’s $14 Billion Juniper Networks Acquisition

Juniper Networks, a competitor to Cisco Systems Inc., specializes in manufacturing networking devices such as routers and switches. These technologies are crucial for directing the flow of information between devices and across the internet. When the deal was announced, HPE stated it would acquire Juniper at a price of $40 per share in cash.

An HPE spokesperson expressed confidence in the ongoing regulatory processes, stating, “We will continue working to complete all necessary remaining reviews and secure additional clearances quickly and efficiently. We continue to expect to close by the end of calendar year 2024 or early 2025.”

The Juniper acquisition is poised to significantly enhance HPE’s capabilities in the networking domain, potentially reshaping the competitive landscape of the industry.

Source: Bloomberg