DOJ ready to block HPE purchase of Juniper if companies try to close - report
Seeking Alpha News (Wed, 29-Jan 9:20 AM)
The Dept. of Justice has prepared a lawsuit and is ready to challenge Hewlett Packard Enterprise's (HPE) planned acquisition of Juniper Networks (NYSE:JNPR) if the companies try to close the deal this week.
The tech firms met with the DOJ on Tuesday to address the regulator's concerns about the combination, according to a Bloomberg report on Tuesday, which cited people familiar with the matter. The DOJ is worried about a loss of competition with Cisco Systems (CSCO) if the deal happens.
A final decision on whether to approve or sue to block the deal is up to senior officials appointed by the Trump administration, according to the report. Possible options include allowing the deal to move forward with some changes or extending the deadline for combination.
HPE, Juniper and the Justice Department declined to comment to Bloomberg.
The news comes after Juniper (NYSE:JNPR) shares fell 6% on Tuesday after a report that the DOJ is leaning toward a lawsuit to block the combination. HPE said last month that both companies were working with the DOJ as the agency continued its review of the deal, which is expected to close in the early part of 2025.
The companies agreed not to close the deal while the DOJ continues its review through Donald Trump's inauguration, it was reported last month. The deal received approval from the European Union in late July.
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