US DOJ sues to block Hewlett Packard Enterprise's $14 bln Juniper deal (updated)

Juniper Networks

30/01/2025 17:17

(Adds background, details and disclosure in paragraphs 3-6)
       Jan 30 (Reuters) - The Department of Justice has sued to block Hewlett Packard
Enterprise's  HPE.N  $14 billion deal to acquire Juniper Networks  JNPR.N , according to a
complaint filed on Thursday in a federal court in California.
    Shares of network equipment maker fell about 3% while the server maker's stock was down
about 2%.
    The DOJ argued that the acquisition would eliminate competition and would lead to two
companies — Cisco Systems  CSCO.O  and HPE — controlling more than 70% of the U.S. market for
networking equipment.
    HPE said early last year that it would buy Juniper Networks for $14 billion in an all-cash
deal, as it looks to spruce up the company's artificial intelligence offerings.
    HPE and Juniper did not immediately respond to requests for comment.
    Juniper gained prominence over the past few years as data centers flocked to its products
for use in AI applications.
    
    

 (Reporting by Akash Sriram in Bengaluru; Editing by Alan Barona)
 ((Akash.Sriram@thomsonreuters.com; On X as @HoodieOnVeshti; +91-99017-77617))