U.S. approves $14B HPE-Juniper merger to counter Huawei amid antitrust controversy

The U.S. government has approved the $14 billion merger between Hewlett Packard Enterprise (HPE) and Juniper Networks after U.S. intelligence agencies intervened to address national security concerns, according to sources familiar with the situation [1]. The deal, initially blocked by the Department of Justice (DOJ) on antitrust grounds, was ultimately greenlit as a strategic move to counter the growing influence of Huawei, a Chinese telecommunications company widely regarded as having close ties to the Chinese Communist Party [2].

The rationale behind the approval, as explained by the source, is that a combined HPE-Juniper entity would serve as a more formidable competitor to Huawei in global markets. This is due to Huawei’s ability to offer a complete technology stack, which the U.S. government believes poses a long-term threat to national and economic security [3]. A single, U.S.-based company with equivalent capabilities, the source said, would strengthen American interests in the networking and infrastructure sectors [4].

Despite the DOJ’s approval, the process was not without controversy. Two senior DOJ antitrust officials reportedly resigned, citing concerns over political interference in the decision-making process [5]. Reports also indicated that the merger included concessions from HPE, such as divesting its Instant On business, to meet antitrust requirements [6]. HPE has stated that the merger will enhance competition in the wireless local area network (WLAN) market, but critics remain skeptical about the long-term effects on competition in the broader networking and cloud infrastructure sectors [7].

The involvement of intelligence officials in corporate merger decisions has sparked renewed scrutiny over how national security considerations influence regulatory actions. The situation highlights the complex interplay between corporate strategy and geopolitical strategy, particularly as the U.S. seeks to maintain leadership in critical technology sectors amid rising global competition [8].

Laura Loomer, a right-wing activist, briefly stirred controversy by alleging that HPE had paid consultants linked to Trump for influence, though she later deleted the claim [9]. The sources quoted in Fortune expressed confusion over Loomer’s involvement, suggesting that the merger’s approval was driven by national security concerns rather than political favoritism [10].

The approval of the HPE-Juniper merger underscores the extent to which national security considerations can override traditional antitrust evaluations in high-stakes corporate transactions. As the U.S. continues to face technological competition from China, such decisions reflect a broader strategy to consolidate domestic capabilities in critical infrastructure and telecommunications.

Source:

[1] HPE-Juniper Merger Controversy Leads to Exit of Two US Justice Department Antitrust Officials (https://smebusinessreview.com/juniper/hpe-juniper-merger-controversy-leads-exit-two-us-justice-department-antitrust-officials)

[2] The tech deal behind DOJ drama (https://www.politico.com/newsletters/digital-future-daily/2025/07/30/the-tech-deal-behind-doj-drama-00485444)

[3] U.S. intelligence intervened with DOJ to push HPE-Juniper merger | Hacker News (https://news.ycombinator.com/item?id=44732937)

[4] U.S. Backed HPE's $14B Juniper Deal To Counter Huawei (https://dataconomy.com/2025/07/31/u-s-backed-hpes-14b-juniper-deal-to-counter-huawei/)

[5] DOJ approval of a corporate merger has exposed a rift in ... (https://www.yahoo.com/news/articles/doj-approval-corporate-merger-exposed-231656219.html)

[6] DOJ firings spark fresh HPE-Juniper deal scrutiny (https://www.techtarget.com/searchnetworking/news/366628372/DOJ-firings-spark-fresh-HPE-Juniper-deal-scrutiny)