UK Investigates HPE's $14 Billion Acquisition of Juniper Networks

The UK's Competition and Markets Authority (CMA) has initiated a "phase 1" investigation into Hewlett Packard Enterprise's (HPE) proposed $14 billion acquisition of Juniper Networks. Announced in January, the deal is intended to enhance HPE's AI capabilities and significantly expand its networking business. The acquisition, valued at $40 per share, represents a 32% premium over Juniper's most recent closing price.

The CMA's inquiry aims to determine whether the merger will reduce competition within any UK market for goods or services. The regulator has set an August 14 deadline to decide whether to escalate the investigation to a more in-depth "phase 2" probe. This review comes as HPE seeks to bolster its presence in the networking sector, which includes products such as routers and switches, areas where Juniper competes with larger rivals like Cisco Systems Inc.