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

By  |  June 19, 2024

Hewlett Packard Enterprise is set to acquire Juniper Networks Inc. in a significant $14 billion deal aimed at bolstering HPE’s position in the networking sector. However, the transaction has attracted the attention of the UK’s Competition and Markets Authority (CMA), which announced on Wednesday that it has initiated a merger inquiry to assess potential competition issues arising from the acquisition.

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    The CMA has set a deadline of August 14 to decide whether to proceed with a full-scale investigation. This step will determine if the merger could substantially reduce competition in the networking industry, which is essential for directing information flow between devices and across the internet.

    Juniper Networks, a major player in the networking equipment market alongside its larger competitor Cisco Systems Inc., specializes in the production of routers and switches. These devices are crucial for managing data traffic, making the network infrastructure more efficient and reliable.

    In the initial announcement of the deal, HPE revealed its intention to purchase Juniper for $40 per share in cash. This acquisition is expected to enhance HPE’s capabilities and market share in the networking technology space, potentially positioning it as a stronger competitor against industry giants.

    At the time of the deal announcement, HPE said it would pay $40 a share in cash for Juniper.

    Related: Hewlett Packard to Acquire Juniper Networks in $14B AI Boost

    Source: BNN Bloomberg