The British regulatory agency, the U.K. Competition and Markets Authority, is investigating Hewlett Packard Enterprise’s acquisition of Juniper Networks. The investigation will review whether the merger would harm competition and is open for public comments until July 3, with an initial decision expected on August 14.
The deal, announced in January, involves HPE acquiring Juniper for $40 per share in cash, totaling around $14 billion. Both companies’ boards have approved the merger, aiming to close it in early 2025.
Juniper and HPE do not have significant product portfolio overlap, as Juniper focuses on network hardware while HPE’s networking business, Aruba, is more centered on enterprise cloud computing. The acquisition reflects a belief in the growing importance of networks in the AI era, according to HPE CEO Antonio Neri.
Following the deal announcement, HPE’s shares initially dropped but have since increased by about 25% after a strong April quarter performance driven by AI server demand. Juniper’s shares are up 19% since the announcement but remain more than 10% below the transaction price.
For further information, contact Nicholas Jasinski at nicholas.jasinski@barrons.com.
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