HPE’s planned takeover of Juniper Networks is being investigated by the UK’s markets regulator.
The British Competition and Markets Authority (CMA) has launched an investigation into the acquisition of Juniper Networks by Hewlett-Packard Enterprise (HPE). HPE announced the acquisition in January, valued at fourteen billion dollars. With this deal, HPE wants to strengthen its position in the AI āāmarket. The acquisition must first clear its way through the regulators. For example, the CMA is in the first phase of assessing whether the deal will lead to a reduction in competition in the UK market. The UK regulator has until August 14 to decide whether to continue the investigation.
Takeover in sight
In January, HPE confirmed its planned acquisition of Juniper Networks. HPE is particularly interested in Juniper’s Mist AI, which it can use to improve access to wireless networks. In addition, Juniper Networks will also benefit from this collaboration, as the company experienced a decline in sales last year. HPE could potentially be a lifeline here. Juniper CEO Rami Rahim will remain head of the future HPE networking division after the acquisition.
HPE expects to complete the acquisition in 2025. A deal of this magnitude attracts the attention of regulators, such as the CMA in this case. The UK regulator is currently inviting relevant stakeholders to comment by July 3. After that, the CMA has until August 14 to decide whether the investigation will move to a formal “Phase 2 investigation.”