Hewlett Packard Enterprise (HPE) is expected to receive unconditional EU antitrust approval for its acquisition of Juniper Networks, according to sources familiar with the matter (via Reuters).
The European Commission, which is set to announce its decision on August 1, has not commented on the potential approval. Neither have HPE or Juniper.
That being said, Britain’s Competition and Markets Authority (CMA) has launched an initial investigation into the takeover, and the second phase of its investigation could come into play on August 14.
EU expected to approve HPE-Juniper acquisition
HPE hopes that the acquisition, first announced in January 2024, will strengthen its position in the market for AI and hybrid cloud applications by incorporating Juniper’s networking solutions.
The company could cite Cisco’s dominant market position as a counterargument against any competition concerns.
In the UK, the CMA’s initial review will determine if the acquisition warrants a more in-depth investigation. It’s unclear whether Europe’s decision could influence the CMA’s.
If HPE’s deal is approved and goes ahead, it would significantly expand the Texas-headquartered tech giant’s networking division. HPE also purchased Californian Aruba Networks for $3 billion in 2015.
The Juniper deal has not been without scrutiny, though. Some have expressed concerns about reduced market options post-merger. The potential elimination of overlapping products between Juniper and Aruba could reduce options further.
With the right regulatory approval, HPE and Juniper’s merger could close by late 2024 or early 2025. HPE, which saw a modest 3% increase in quarterly revenue to $7.2 billion in the three months that ended April 30, could get a healthy boost following the takeover, while Juniper is expected to benefit from HPE’s broader reach.
