(Reuters) – Juniper Networks denied the allegations by the U.S. Department of Justice, after the agency sued to block Hewlett Packard Enterprise’s $14 billion all-cash takeover of the networking gear maker, according to a court filing. Last month, the DOJ argued in its complaint that the proposed deal would stifle competition and lead to Cisco […]
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Juniper Networks denies allegations in US DOJ lawsuit to block $14 billion merger with HPE
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(Reuters) – Juniper Networks denied the allegations by the U.S. Department of Justice, after the agency sued to block Hewlett Packard Enterprise’s $14 billion all-cash takeover of the networking gear maker, according to a court filing.
Last month, the DOJ argued in its complaint that the proposed deal would stifle competition and lead to Cisco Systems and HPE controlling more than 70% of the U.S. market for networking equipment.
The complaint does not correctly represent the market dynamics for wireless network solutions and the companies’ rationale for the deal, Juniper said in a filing made to a federal court in California on Monday.
There are more than eight companies offering wireless networking solutions in the U.S., other than Juniper and HPE, it said.
Cisco has had more than 50% of the market for the past 10 years, while HPE and Juniper have had a combined share of less than 25% over the last three years, according to the filing.
The combined market share of HPE and Juniper are lower than a level that would allow the DOJ to presume the deal as illegal, it said.
The deal, announced more than a year ago, would boost competition against Cisco, Juniper said.
The DOJ’s antitrust lawsuit marks the first since President Donald Trump’s second term in office.
(Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar)