AP business writer, matte otto
The Justice Ministry has appealed on Thursday to block the $ 14 billion of Hewlett -Packard Enterprise, which acquired a rival Juniper network of $ 14 billion.
The complaint of justice is forced Hewlett Packer Enterprise to discount products and services, and invests in its own innovation under the increase in competition pressure from a rapidly rising juniper. He claims that he has begun to buy rivals.
Litigation stated that the combination of companies would lose competition, raise prices, and reduce innovation.
HPE and Juniper made a joint statement on Thursday, saying that companies are strongly opposed to DOJ’s decision.
“We will violently defend the excessive interpretation of the anti -trading method of the Justice, prove the way to provide a greater innovation and selection of this transaction, and actively change the dynamics of the networking market. “Said the company.
The company said that the combined company would create more competition.
The Intervention of the Justice -the first government, only 10 days after Donald Trump’s inauguration, is somewhat surprising. Most people predict the second Trump administration in order to alleviate the execution of anti -trade and accept the merger and transactions after many years of supervision under the clock of former President Joe Biden. I did.
One year ago, Hewlett Packard Enterprise announced that he had purchased a juniper network for $ 40 per share in transactions that were expected to double the HPE networking business.
In the complaint, the government drew a picture of the Hewlett Packard Enterprise and desperate to catch up with a small rival that adopted the business.
HPE sales representatives were concerned about the “threat of juniper”, claiming that a former executive had said to his team that there was no rule in street fights, and in search of a sales opportunity. I encouraged me to “kill”.
The Ministry of Justice stated that the Hewlett Packard Enterprise and Juniper are the second largest providers in the wireless local area network (WLAN) products and services for business.
“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. I will leave a US company in some cases. ” leader.
Many companies and investors accused Biden’s regulatory authorities as overreaching anti -trade, looking forward to the more friendly Trump administration.
Under the Biden, the Federal Trade Commission has appealed to prevent the merger of $ 24.6 billion between Croggers and Albertosons, which would have been the largest flock store in the US history. Two judges agreed to the FTC case and blocked the proposed transactions in December.
In 2023, the Ministry of Justice stated that it would forcing the United States and Jet Blue airlines to abandon partnerships in the northeastern United States, reducing competition, and ultimately spending hundreds of millions of dollars to consumers. I did it. The partnership was blessed by the Trump administration when it was enabled in early 2021.
Last year, US regulatory authorities proposed to dissolve Google to maintain “abused monopoly” through a market -dominated search engine. The court hearing on Google’s punishment is scheduled to begin in April, and the judge aims to make a final decision before the worker day. It is unknown that the Trump administration is in this case.
One of the merger agreed by both Trump and Videen is the acquisition of US Steel proposed by Nippon Cheel. Biden blocked nearly $ 15 billion acquisition just before his term ended. The company disagreed with the Federal Litigation earlier this year.
Trump has consistently opposed the transaction, and is wondering why he will sell the new tariffs that he has sworn to foreign companies.
Initially issued: January 30, 2025 1:13 pm
