The Ministry of Justice continues to block $ 14 billion per juniper by Hewlett Packard Enterprise

The Ministry of Justice continued to block the acquisition of 14 billion dollars by Hewlett Packard Enterprise of Rival Juniper Networks on Thursday, the first attempt to stop a merger by a new Trump administration which should adopt a softer approach to mergers.

The complaint of justice alleys that Hewlett Packer Enterprise, under increased competitive pressure of the juniper to a rapid increase, was forced to suppress products and services and to invest more in his own innovation, which ultimately led the ‘ company to buy its rival.

The trial said that the combination of businesses would eliminate competition, increase prices and reduce innovation.

HPE and Juniper made a joint statement on Thursday, saying that companies firmly oppose the DOJ’s decision.

“We will defend ourselves vigorously against the excessive interpretation of the Ministry of Justice of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice, will positively modify the dynamics of the networking market,” said companies.

The combined company would create more competition, no less, have said companies.

The intervention of the Ministry of Justice – the first in the new administration and only 10 days after the inauguration of Donald Trump – is in a way a surprise. Most predicted a second Trump administration to facilitate the application of antitrust and be more receptive to mergers and the agreement after years of hypervigilance under the supervision of former president Joe Biden.

Hewlett Packard Enterprise Announced a year ago that it bought juniper networks for $ 40 per share in an agreement which should double HPE networking activities.

In its complaint, the government painted an image of Hewlett Packard Enterprise as a desperate company to follow a smaller rival which took its belongings.

HPE sellers were concerned about the “threat of juniers,” said the complaint, also alleging that a former executive told his team that “there were no rules in a street fight”, the Encourageing to “kill” the juniper during the competition for sales opportunities.

The Ministry of Justice said Hewlett Packard Enterprise and Juniper are both and third providers of Local Wireless Network (WLAN) of the two and services.

“The transaction proposed between HPE and Juniper, if it is authorized to continue, would consolidate an already very concentrated market more – and would leave American companies to which two companies commanded more than 70% of the market,” said the complaint, adding that Cisco Systems was the chief industry.

Many companies and investors have accused the regulatory agencies of Biden of the exaggerated antitrust and were Pending a friendlier Trump administration.

Under Biden, the Federal Commerce Commission continued to block a 24.6 billion dollars in merger between Kroger and Albertsons It would have been the largest grocery merger in American history. Two judges agreed with the FTC case, blocking the agreement proposed in December.

In 2023, the Ministry of Justice, in court, forced the American airlines and JetBlue to abandon their partnership In the northeast of the United States, saying that this would reduce competition and end up costing consumers hundreds of millions of dollars a year. This partnership had the blessing of the Trump administration when he entered into force in early 2021.

American regulators also proposed last year To break google To maintain an “abusive monopoly” via its predominantly searching engine on the market, Chrome. The hearings on the courts on the sanction of Google should start in April, the judge aimed at making a final decision before the Labor Day. We do not know where the Trump administration is on the case is.

A merger that Trump and Biden have accepted should not cross is the acquisition proposed by Nippon Steel from Us Steel. Biden blocked the acquisition of nearly $ 15 billion Just before the end of his mandate. Companies challenged this decision in a federal trial at the start of this year.

Trump has Constantly expressed opposition to the agreementwondering why US Steel would sell for a foreign company given the regime of new prices he has promised.