The US Justice Department has moved to block Hewlett Packard Enterprise Co's (NYSE:HPE, ETR:2HP) $14 billion takeover of Juniper Networks.
The challenge is unexpected under a new Trump administration that was expected to take a softer stance on mergers.
Regulators argue that HPE, under pressure from Juniper, chose to buy its rival rather than compete. They claim the deal would reduce competition, raise prices, and slow innovation.
HPE and Juniper pushed back, calling the move an “overreach” and promising to fight it. They argue the merger would benefit customers and increase competition.
The complaint highlights that HPE and Juniper are the second- and third-largest US wireless networking providers. If approved, the deal would leave just two companies—HPE and Cisco—controlling over 70% of the market.