A federal judge on November 18 granted a coalition of U.S. states the right to intervene in the Department of Justice’s review of Hewlett‑Packard Enterprise’s $14 billion acquisition of Juniper Networks. The decision follows a settlement reached on June 28 that allowed the merger to proceed under conditions, including HPE’s divestiture of its Instant On business and licensing of Juniper’s Mist AI source code to competitors.
The states, led by California and New York, argue that the settlement does not fully address antitrust concerns that the combined company could create a duopoly with Cisco in the enterprise‑grade wireless local area network market, potentially raising prices and stifling innovation. They also allege improper lobbying and political influence in the DOJ’s decision, citing the dismissal of two DOJ antitrust attorneys who opposed the settlement.
Under the Tunney Act, the states’ intervention triggers a judicial review that could delay or alter the closing of the merger, which was scheduled for July 2. The review will assess whether the settlement is in the public interest and whether the conditions imposed are sufficient to preserve competition.
HPE and Juniper have positioned the deal as a strategic move to build a cloud‑native, AI‑driven networking portfolio. Juniper’s Mist AI platform, which uses machine learning to automate network operations, is a key asset that HPE intends to integrate into its broader IT offerings. The merger is expected to create synergies that could accelerate the adoption of AI‑enabled networking in hybrid cloud environments.
The legal challenge underscores the heightened scrutiny that large technology mergers face from regulators worldwide, including the UK’s Competition and Markets Authority and the European Commission. If the states’ intervention leads to additional conditions or a delay, HPE may need to adjust its integration timeline and capital allocation plans, potentially impacting its 2025 earnings guidance.
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