HPE proposed acquisition of Juniper Networks blocked by US Justice Dept

The US Justice Department has sued to block HPE’s proposed US$14 billion acquisition of rival wireless local area network (WLAN) technology provider Juniper Networks, citing the deal’s anti-competitive nature.

HPE and Juniper are the second, and third largest providers, respectively, of enterprise-grade WLAN solutions in the United States, with global footprints.

The complaint, filed in the Northern District of California, alleges the proposed transaction would eliminate fierce head-to-head competition between the companies, raise prices, reduce innovation, and diminish choice for scores of American businesses and institutions, in violation of Section 7 of the Clayton Act.  

Acting Assistant Attorney General Omeed A Assefi of the Justice Department’s Antitrust Division, said both HPE and Juniper are successful companies.

“But rather than continue to compete as rivals in the WLAN marketplace, they seek to consolidate, increasing concentration in an already concentrated market,” he said.

“The threat this merger poses is not theoretical. Vital industries in our country, including American hospitals and small businesses, rely on wireless networks to complete their missions.

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