HPE representatives met with Donald Trump’s antitrust enforcers on Tuesday over its $14 billion bid to buy Juniper Networks Inc., according to people familiar with the matter.
HPE and Juniper representatives discussed the US Justice Department’s concerns about the deal with Omeed Assefi, the official temporarily overseeing antitrust enforcement at the agency, said the people, who asked not to be named discussing confidential talks.
The wireless networking equipment makers previously met with top Biden antitrust officials, who raised concerns about the deal, Bloomberg reported. The Justice Department has prepared a complaint and is ready to challenge the tie-up if the companies seek to close the deal this week, the people said.
A final decision on whether to file a lawsuit will be up to senior officials appointed by the Trump administration, which has reversed course on some decisions by its predecessors in the Biden Justice Department.
The Justice Department is concerned about a possible loss of competition with Cisco Systems Inc., the market leader in the sector, according to the people. While several smaller companies also compete in the market, Justice Department enforcers consider HPE and Juniper to be two of the primary drivers of innovation in the market, and believe Cisco will lose significant competition if they combine, the people said.
Under an agreement with the Justice Department, the companies agreed to not close the deal until later this week, the people said. The deadline can be extended by HPE and Juniper, and doing so could allow for Gail Slater, Trump’s nominee to head the antitrust division, to review the case. Her nomination is awaiting Senate confirmation.
Alternatively, the agency could let HPE’s purchase of Juniper proceed with some changes to address its competition concerns. The merger agreement between the two companies lasts through October 2025, allowing time for negotiations.
The Justice Department launched an in-depth probe of the tie-up last year. HPE, Juniper and the Justice Department declined to comment.