U.S. DOJ Sues To Block HP Enterprise’s $14-B Juniper Deal

The U.S. Department of Justice has filed a lawsuit to block Hewlett Packard Enterprise's (HPE) $14 billion acquisition of networking gear maker Juniper Networks, arguing that the deal would stifle competition, Reuters reporter Akaash Sriram wrote.

HPE announced plans to acquire Juniper Networks in an all-cash deal valued at $14 billion over a year ago. I Photo: Hewlett Packard Enterprise Facebook

Shares of both HPE and Juniper Networks closed about 2% lower following the news. The antitrust lawsuit is the first since President Donald Trump took office last week.

The DOJ argued that the acquisition would eliminate competition, leaving only two companies—Cisco Systems and HPE—controlling more than 70% of the U.S. market for networking equipment.

More than a year ago, HPE announced plans to acquire Juniper Networks in an all-cash deal valued at $14 billion as part of its strategy to enhance its artificial intelligence (AI) offerings.

"The DOJ's claim that the WLAN (Wireless Local Area Network) market consists of only three primary players is significantly disconnected from market realities," the companies said in a joint statement.