World News | Justice Department Sues to Block USD 14 Billion Juniper Buyout by Hewlett Packard Enterprise

Washington, Jan 30 (AP) The Justice Department sued to block Hewlett Packard Enterprise's USD 14 billion acquisition of rival Juniper Networks on Thursday, the first attempt to stop a merger by a brand new Trump administration that most expect will take a softer approach to mergers.

The Justice complaint alleges that Hewlett Packer Enterprise, under increased competitive pressure from the fast-rising Juniper, was forced to discount products and services and invest more in its own innovation, eventually leading the company to simply buy its rival.

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The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation.

The Justice Department's intervention — the first of the new administration and just 10 days after Donald Trump's inauguration — comes as somewhat of a surprise.

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Most experts predicted a second Trump administration to ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under former President Joe Biden's watch.

Hewlett Packard Enterprise announced one year ago that it was buying Juniper Networks for USD 40 a share in a deal expected to double HPE's networking business.

The Justice Department said that Hewlett Packard Enterprise and Juniper are the US's second- and third-largest providers of wireless local area network (WLAN) products and services for businesses. (AP)

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