DOJ Sues to Block Hewlett Packard Enterprise’s $14 Billion Juniper Deal

By Evans Momodu
3 minute read

The U.S. Department of Justice has filed a lawsuit to block Hewlett Packard Enterprise’s (HPE) $14 billion acquisition of networking equipment manufacturer Juniper Networks, citing concerns that the deal would hinder competition.

Shares of both HPE and Juniper Networks dropped over 3% in afternoon trading. This marks the DOJ’s first antitrust lawsuit since President Donald Trump took office last week.

The DOJ contends that the acquisition would reduce competition, leaving only two dominant players—Cisco Systems and HPE—controlling over 70% of the U.S. networking equipment market.

HPE announced more than a year ago that it planned to acquire Juniper Networks in an all-cash deal to enhance its artificial intelligence capabilities.

In a joint statement, both companies vowed to defend the deal, asserting that their complementary networking solutions would strengthen competition against established global players.

"Juniper has introduced innovative tools that have significantly lowered the cost of operating wireless networks for many customers. This competitive pressure has compelled HPE to reduce prices and invest in innovation," the DOJ stated in its complaint.

Juniper has gained traction in recent years as data centres increasingly adopt its products for AI applications.

According to the DOJ, Juniper’s strong market presence forced HPE to offer discounts and develop new features under its “Beat Mist” campaign—named after Juniper’s competing product.

“After failing to outcompete Mist on its merits, HPE shifted strategies and, in January 2024, opted to acquire Juniper instead,” the DOJ added.

Bloomberg News reported earlier this week that HPE representatives had met with Trump’s antitrust officials regarding the proposed acquisition.

Meanwhile, the deal has already secured approvals from the UK Competition and Markets Authority and the European Union.
Source: CNN