The UK Competition and Markets Authority (CMA) has initiated an investigation into Hewlett Packard Enterprise (HPE) Juniper Networks’ upcoming acquisition. The investigation, set to begin on June 20, aims to assess whether the merger will create a relevant merger situation under the merger provisions of the Companies Act 2002. Interested parties have until July 3 to submit comments to the CMA regarding the potential impact of the merger on their market position.
HPE announced its plans to acquire Juniper Networks in January 2024 for $40 per share, totaling approximately $14 billion. The merger is expected to bolster HPE’s networking business and expand its total addressable market. HPE President and CEO Antonio Neri expressed confidence in the deal, emphasizing its potential to drive innovation and bridge the AI and cloud native worlds.
Both Neri and Juniper CEO Rami Rahim have expressed optimism about the merger, with Rahim believing that joining HPE will accelerate the next phase of Juniper’s journey. HPE has assured that Juniper employees will retain their jobs under the new ownership.
The completion of the acquisition is contingent on regulatory approval, with a projected timeline for completion in late 2024 or early 2025. The CMA’s investigation is part of a broader regulatory scrutiny faced by HPE and Juniper Networks, as various antitrust authorities worldwide are monitoring the merger closely.
The CMA’s inquiry into the HPE Juniper Networks acquisition signals the beginning of a regulatory review process that will evaluate the potential impact of the merger on competition in the market. Stay tuned for updates on this developing story as more information becomes available.
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https://www.techradar.com/pro/uk-regulator-set-to-probe-hpes-dollar14bn-juniper-networks-acquisition