Plain sailing for HPE as Juniper Networks acquisition expected to breeze through antitrust probe

HPE is on track to secure unconditional support from the EU for its proposed acquisition of Juniper Networks, paving the way for a straightforward completion of the deal amidst competition concerns.

The EU is still probing the acquisition, having entered into the investigation phase back in June with a deadline slated for the beginning of August 2024. 

Now, however, people familiar with the matter suggest that the bid is a foregone conclusion and that the acquisition has been approved. 

This is according to reporting by Reuters, which does not state how these sources are related to the acquisition. The European Commission declined to comment in response to a request from Reuters, as did HPE.

ITPro has approached HPE for comment on the matter.

The UK’s Competition and Markets Authority (CMA) is engaged in a similar investigation into the deal to assess whether or not it will create a “substantial lessening of competition” in certain UK markets.

The CMA is working to a deadline of 14 August, at which point it will need to decide whether it will enter the second phase of investigation. As of yet, there is little clarity on how the CMA is approaching the deal. 

HPE’s Juniper Networks deal could “alter” the networking market

Initially announced in January 2024, HPE’s bid for the networking company has been valued at $14 billion and constitutes a significant shift in the global networking market, especially with regard to key competitors. 

HPE said the deal will double the size of its networking business, an arm of the firm that accounts for a sizable and profitable portion of the overall company. 

This may stand HPE in good stead to fend off rivals such as Cisco, Dell, and Broadcom, all of whom operate in the networking space. As an acquisition, Gartner analyst Andrew Lerner feels that this move will “materially alter the networking market.”

“The primary benefits include better scale to compete with Cisco, increased consumption options for customers, and a stronger overall product portfolio for HPE,” Lerner told ITPro.  

He was careful to mention the potential drawbacks of the deal, however. Lerner suggested there is a likelihood for “long-term product rationalization and a focus on integration” to such an extent that emerging customer requirements take a back seat while Juniper is integrated within the HPE portfolio.

The deal is estimated to close by the end of 2024 or the start of 2025, with HPE heralding operating efficiencies and cost “synergies” of $450 million after three years of the deal being signed.