After the EU and UK approvals, can HPE's (HPE.US) $14bn acquisition of Juniper Networks (JNPR.US) get the Trump administration's blessing?
1min read Hewlett Packard Enterprise (HPE.US) representatives met with antitrust enforcement officials from the Trump administration on Tuesday to discuss the company's $14bn acquisition of networking equipment maker Juniper Networks (JNPR.US), according to sources familiar with the matter.Sources said that representatives from HPE and Juniper met with Omeed Assefi, the acting head of the department, to discuss the Justice Department's concerns about the deal. The sources asked not to be identified because the discussion was confidential.The two wireless networking equipment makers had already met with senior antitrust officials from the Biden administration, who raised concerns about the deal. The Justice Department is ready to file a lawsuit if the companies try to complete the deal this week, the sources said.The final decision on whether to sue will be made by senior officials appointed by the Trump administration, which has overturned some decisions made by the Biden Justice Department.HPE chief executive Antonio Neri said last week at the World Economic Forum in Davos, Switzerland: "There is no reason for me to believe that this deal cannot be approved."The Justice Department is concerned that the deal could lead to a weakening of competition with Cisco (CSCO.US), the industry's market leader, the sources said. Although several smaller companies also compete in the market, the Justice Department's antitrust officials believe that HPE and Juniper are among the main drivers of innovation in the market and that if the two companies were to merge, Cisco would lose a significant competitor.Under an agreement with the Justice Department, the companies have agreed not to complete the deal before later this week, the sources said. HPE and Juniper could extend that deadline, which could give Gail Slater, the nominee to head the antitrust division, appointed by Mr Trump, time to review the case. Her nomination is pending confirmation by the Senate.Another possibility is that the Justice Department could allow the HPE acquisition of Juniper to go ahead but with some adjustments to address its competition concerns. The merger agreement between the two companies runs until October 2025, giving time for negotiations.The deal has already been approved by Britain and the European Union. The Justice Department launched a deep dive into the deal last year.
