Hewlett Packard Enterprise Co HPE is reportedly poised to receive unconditional EU antitrust approval for its $14 billion acquisition of networking gear manufacturer Juniper Networks Inc JNPR.
The deal, announced in January, reflects the accelerating trend among companies to enhance and innovate their products amidst the surge in AI-driven services.
The European Commission is expected to make a decision on the acquisition by August 1, Reuters reported. The commission has not provided any comments on the matter.
To address potential competition concerns within the EU, HPE is likely to emphasize the market dominance of Cisco Systems Inc. CSCO, a major competitor of Juniper Networks.
This strategic move aims to mitigate any regulatory apprehensions regarding the acquisition’s impact on market competition.
The acquisition is also under review by the U.K.’s antitrust authority, with a decision expected by August 14. The outcome of these regulatory reviews will determine the finalization of the deal, which is set to impact the networking equipment industry.
The acquisition aligns with HPE’s strategy to bolster its capabilities in response to the increasing demand for AI-driven services.
By integrating Juniper Networks’ technology, HPE aims to strengthen its product offerings and maintain a competitive edge in the rapidly evolving tech landscape.
HPE has been cautious about major acquisitions, with its most significant buy being the $1.5 billion purchase of supercomputer maker Cray in 2019.
Price Action: HPE shares are trading lower by 1.49% at $19.47 at last check Monday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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