The UK’s Competition and Markets Authority (CMA) has launched an investigation into a proposed $14 billion acquisition of Juniper Networks by Hewlett Packard Enterprise (HPE). The deal, announced in January 2024, has raised concerns about potential competition issues in the United Kingdom. HPE stated that the acquisition will enhance its networking business and allow it to leverage Juniper’s network security and AI-enabled enterprise networking offerings. The CMA is investigating the deal under the UK Companies Act 2002, specifically looking into whether the acquisition will result in a substantial lessening of competition in any market for goods or services in the UK. The deadline for the CMA to announce its decision on whether to refer the merger to a Phase 2 investigation is set for August 14, 2024.
Hewlett Packard is a technology veteran, considered one of the founding companies of Silicon Valley. HPE was created in 2015 as a division of Hewlett-Packard, focusing on enterprise software and networking, while HP focused on manufacturing PCs, laptops, and printers. HPE has been cautious about large acquisitions since the Autonomy debacle but did acquire supercomputer maker Cray Inc. for $1.3 billion in 2019. In December 2020, HPE announced a move of its headquarters from California to Texas.
HPE had hoped to close the acquisition of Juniper Networks in late 2024 or early 2025 but is now working with the UK regulator to complete the necessary reviews and obtain authorization promptly. The CMA’s investigation seeks comments from interested parties to assess the potential impact of the deal on competition in the UK market. HPE’s acquisition of Juniper Networks is seen as a strategic move to enhance its networking capabilities and challenge industry leader Cisco Systems.
Overall, the CMA’s investigation into the HPE-Juniper Networks acquisition highlights the potential impact on competition in the UK market and the need to ensure fair competition and consumer choice. The deadline for the CMA’s decision on further investigation is in August, with both companies cooperating with regulators to obtain approval for the deal.
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https://www.silicon.co.uk/e-enterprise/merger-acquisition/uk-investigates-hpes-14bn-acquisition-of-juniper-networks-568775