CMA Opens Probe into HPE – Juniper Merger

CMA Opens Probe into HPE – Juniper Merger

The UK Competition and Markets Authority started a preliminary investigation into the potential ramifications of Hewlett Packard Enterprise’s $14 billion acquisition of Juniper Networks. The regulator plans to find out whether the combination of the two companies would cut competition for goods and services in the UK market.

The deadline for the initial investigation is 14 August. After that, the CMA will decide whether to refer the deal for a deeper investigation. It also invited comments from interested parties until 3 July.

Having announced the deal at the start of 2024, the bosses of the two companies extolled the benefits of the combination at MWC Barcelona 2024, highlighting deemed positives for customers in the telecom sector and beyond. During that session, HPE president and CEO Antonio Neri and Juniper Networks chief Rami Rahim pointed to the potential of the joint company in providing solutions to deal with increased power and performance requirements from infrastructure in the AI era.

In the company’s earnings call held on 4 June, Neri said the deal was currently going through the regulatory process and is expected to close in line with an originally communicated estimate of the end of 2024 or early 2025. In addition to getting through UK authorities, the deal will also have to be cleared by regulators in various other markets including the duo’s home country of the US.