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The acquisition was first announced last January
The UK Competition and Markets Authority has opened an inquiry to investigate whether Hewlett Packard Enterprise’s commencing acquisition of Juniper Networks for $14 billion would cause competition concerns in the market.
The CMA “is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services,” read the official statement. It invites any interested parties to submit comments on the transaction.
Back in January, HPE announced that it would acquire Juniper Networks in an all-cash deal of approximately $14 billion, equating to $40 per share. After the acquisition, HPE estimates that its networking business will double, as the “explosion of AI and hybrid cloud-driven business is accelerating demand for secure, unified technology solutions that connect, protect, and analyse companies’ data from edge to cloud,” the companies said.
“HPE’s acquisition of Juniper represents an important inflection point in the industry and will change the dynamics in the networking market and provide customers and partners with a new alternative that meets their toughest demands,” said HPE President and CEO Antonio Neri in a press release.
If approved, the combined entity will be run Juniper CEO Rami Rahim who will report to Neri.
In a statement, the CMA confirmed that phase one of the investigation would begin on 20 June. The investigation will run until 14 August, when the CMA will decide if moving to a second phase if necessary.
Investigations by the CMA into such large transactions are not unexpected. Back when the deal was announced, the two companies expected the deal to close by early 2025 at the latest, pending regulatory approval.
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