UK watchdog to probe HPE takeover of Juniper

19th Jun 2024 12:15

(Sharecast News) - The UK competition regulator has launched an investigation into Hewlett Packard Enterprise's proposed $14bn takeover of Juniper Networks, it was confirmed on Wednesday.

The Competition and Markets Authority said it wanted to assess whether the planned tie-up could result in a substantial lessening of competition.

It has invited comments from any interested party, and will decide whether to proceed with a more in-depth phase 2 probe by 14 August.

America's HPE, which manufacturers hardware and software for data centres, agreed to pay Juniper's shareholders $40 per share in January.

At the time, HPE called the deal an "important inflection point in the industry" and said it would change the dynamics in the networking market.

In particular, HPE - which was split off from HP's computer and printers business in 2015 - wants Juniper to help boost its AI offerings.

HPE and Juniper have yet to comment on the decision. US markets were closed on Wednesday for the Juneteenth national holiday.

Interested parties have until 3 July to comment.