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The European Commission has given its approval for the proposed acquisition of Juniper Networks by Hewlett Packard Enterprise (HPE). HPE is looking to acquire the network equipment manufacturer for a staggering fourteen billion dollars. The deal is still under scrutiny by the British competition regulator.
On Thursday, the European Commission officially sanctioned the acquisition. The Commission has determined that the acquisition does not present a significant threat to competition, and as a result, no additional conditions or requirements have been imposed on either party. Unlike in the case of the Broadcom acquisition of VMware last year, the EU has deemed additional conditions unnecessary in this instance.
HPE and Juniper's position in the market is described as 'moderate' post-acquisition, with both companies continuing to face competition from existing players in the network hardware market, such as WLAN equipment and switches. The EU has also clarified that HPE and Juniper are not each other's main competitors in this space. Additionally, the European Commission does not foresee the market position of the two companies in the realm of HPC systems and midrange servers becoming overly dominant.
The Competition and Markets Authority, the UK's competition regulator, is still reviewing the acquisition. The regulator initiated an initial investigation in June, with a final decision expected by Wednesday, August 14. If deemed necessary, the CMA may proceed with a more in-depth 'phase 2' investigation. As of now, the American FTC has not disclosed whether it will be investigating the takeover. HPE had indicated back in January, upon the announcement of the deal, that the acquisition is likely to be finalized by the end of 2024 or early 2025.
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