US states gain right to challenge HPE’s $14 billion Juniper acquisition
A U.S. judge has allowed several states, including Colorado, to intervene in Hewlett-Packard Enterprise’s (HPE) $14 billion acquisition of Juniper Networks, amid concerns over competition and the Department of Justice’s settlement terms.
U.S. District Judge Casey Pitts in San Jose said the states could weigh in on the case but did not decide whether to probe the settlement’s circumstances. The DOJ initially sued to block the deal in January, arguing it could reduce competition, leaving only HPE and Cisco controlling over 70% of the U.S. networking equipment market, News.Az reports, citing Reuters.
The DOJ later agreed to drop its claims after HPE promised to license Juniper’s AI technology to competitors and sell a unit serving small and mid-sized businesses. States and Democratic lawmakers have raised concerns about the role of lobbyists tied to the Trump administration in the settlement and whether it fully addresses the competition issues.
Last week, the DOJ added terms requiring HPE to sell its Instant On wireless networking business to a competitor and barred it from repurchasing the unit for ten years. HPE maintains confidence that the settlement was reached appropriately.
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