The US Department of Justice (DOJ) has filed a lawsuit in blocking Hewlett Packard Enterprise (HPE) proposing a rival juniper network of $ 14 billion. The first attempt by the Trump administration to stop the merger, claimed that HPE, which faces the intensifying competition from Juniper, has chose to buy rivals instead of continuing to innovate and competition. I am doing it. DOJ stated that the merger will reduce competition, lead to rising prices, and reduce the innovation of the networking industry. Last year, HPE announced that it would be a transaction that the buyer’s networking business would be doubled, and plans to get a juniper network for $ 40 per share.
What HPE and Juniper said about the lawsuit
HPE and Juniper issued a joint statement that the two companies strongly opposed the DOJ decision. Companies have stated that the merged entities do not hinder competition.
In the statement, HPE and Juniper are written as follows. “We will violently defend the interpretation of the judicial Ministry of Justice. Anti -trading method This transaction also shows how to provide customers with more innovation and selections, and actively changes the networking market dynamics. “
What DOJ said about the acquisition of HPE Juniper
In the complaint, DOJ described HPE as a company that is struggling to keep pace with small competitors who have gained market share.
The complaint pointed out that HPE sales representatives are worried about the “juniper threat”, urging one former executive to adopt an approach that is not banned by the team, and says “rules for streetfights. No, “he told them to encourage them.” Kill “JUNIPER” at the sales competition.
DOJ has also added HPE and Juniper to be the second and third providers of wireless local area networks (WLAN) products for US companies, and that Cisco System is the industry leader.
“If the proposed transactions between HPE and Juniper are allowed to continue, they will further integrate the markets that are already concentrated and lead two companies that lead more than 70 % of the market. Leave a US company. Doj said in a complaint.
