By Connor Hart
Shares of Hewlett Packard Enterprise and Juniper Networks fell after the Justice Department sued to block HPE's $14 billion acquisition of its rival wireless-technology provider.
HPE's stock was trading 2.6% lower, at $21.10, midday Thursday. Juniper's stock fell 3.4%, to $33.98. Shares of HPE have gained 37% in the past year, while shares of Juniper have fallen 7.9% during the same period.
The DOJ said that the companies' proposed transaction would eliminate competition, resulting in higher prices, reduced innovation and fewer choices for companies and consumers.
HPE and Juniper are the second- and third-largest providers of commercial wireless networking solutions in the U.S., according to the department's complaint. Their combination would result in two companies--Cisco Systems and HPE--controlling more than 70% of the U.S. market.
"The threat this merger poses is not theoretical," said Omeed Assefi, acting assistant attorney general of the Justice Department's Antitrust Division. "Vital industries in our country--including American hospitals and small businesses--rely on wireless networks to complete their missions."
HPE and Juniper struck their $14 billion deal last January, marking a big bet on networking and artificial intelligence.
Representatives from HPE and Juniper didn't immediately respond to requests for comment.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
January 30, 2025 12:39 ET (17:39 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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