The European Commission has granted unconditional approval for Hewlett Packard Enterprise (HPE) to acquire Juniper Networks, Inc. (Juniper) for USD 14 billion, under the EU Merger Regulation.
In January, HPE announced its intention to acquire Juniper, a major player in network equipment, for USD 14 billion (cash). At that time, HPE projected that the deal would significantly enhance its networking business and boost its adjusted earnings per share within a year of completion.
Related: UK Launches Probe into HPE’s USD 14 Billion Juniper Networks Acquisition
During its investigation, the regulator examined the USD 14 billion acquisition’s potential effects on the global market encompassing WLAN equipment, wireless access points, and data center switches, as well as its impact on the supply of Ethernet campus switches within the European Economic Area.
Following the approval of the deal, the regulator stated that the acquisition would not significantly reduce competition in these markets, noting that in the WLAN, WAP, and Ethernet campus switch segments, the merged entity’s market position would remain “moderate.”
The regulator also pointed out that the two companies were not each other’s closest competitors in these areas and that the combined business would continue to face competition from a broad range of strong and established players.
The European Commission dismissed concerns that the larger company might engage in anticompetitive bundling practices within the global markets for high-performance computing systems and mid-range servers.
Brazil’s regulators granted unconditional approval for the deal in May. In the U.K., the Competition and Markets Authority (CMA) began an antitrust investigation into the acquisition months ago. The CMA’s review could result in either a straightforward approval or the initiation of a more detailed ‘Phase 2’ investigation. The CMA is expected to announce its decision by August 13.
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