The UK’s competition watchdog is looking into Hewlett-Packard Enterprise’s $14 billion acquisition of Juniper Networks due to concerns about potential competition issues in the market. HPE announced their plan to acquire Juniper Networks, a major producer of networking equipment, in order to enhance their artificial intelligence efforts. They anticipate that the acquisition will double their networking business and are aiming to finalize the deal by the end of the fiscal year or early 2025. HPE is actively engaging with the UK watchdog to facilitate reviews and secure approval for the acquisition without a more in-depth investigation. The Competition and Markets Authority has until August 14 to decide if further examination of the deal is necessary.
The rising focus on AI adoption and preparedness has led to several mergers and partnerships that have raised concerns about competition. The partnership between Microsoft and OpenAI, considered one of the most significant, has also drawn attention from the CMA over worries that it could hinder smaller companies looking to establish themselves in the growing AI market.
The investigation into HPE and Juniper Networks by the CMA is currently ongoing, with the authority reaching out to interested parties for input on whether the merger could lead to a significant reduction in competition within any UK markets for goods or services.
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