HPE's $14B bid for Juniper waved through by UK regulator

Probe began in June and was over by August, no need for corporate lobbying (you hearing this Microsoft?)

The UK's competition watchdog – often a fly in the ointment of proposed global tech acquisitions – has approved Hewlett Packard Enterprise's $14 billion buy of rival Juniper Networks.

In a brief statement, the Competition Markets Authority said today: "The CMA has cleared the anticipated acquisition by Hewlett Packard Enterprise Company of Juniper Networks. The full text of the decision will be published shortly."

The $40 per share transaction was confirmed by HPE in January and given general approval by Juniper shareholders in April, although some stock owners launched a lawsuit that alleged Juniper had withheld material information from investors.

Execs at both vendors might have expressed private concern when the CMA confirmed in June that it was launching a merger inquiry into the proposed alliance. The regulator urged interested third parties to come forward to express any worries about any potential lessoning of competition.

It seems too few came forward or those that did failed to substantiate claims the union would substantially affect the UK market. The EU is expected to wave through the bid too, clearing another potential blocker.

As such, the $14 billion purchase is getting nearer to completion, originally forecast by HPE to happen near the end of 2024 or early 2025. Assuming, that is, that US regulator the FTC doesn't hold up proceedings.

A spokesperson at HPE told The Register:

"This clearance satisfies a major closing condition to the proposed acquisition, which will create significant opportunity for our customers, for the networking industry and for HPE as a company. We will continue working to complete all necessary remaining reviews and secure additional clearances quickly and efficiently so that we can begin delivering value to our customers as soon as possible."

Juniper will be HPE's first major buy in network tech since it coughed up $3 billion for Aruba in 2015 and $2.7 billion for switch biz 3Com in 2009. It is also HPE's biggest deal since it took over Autonomy. HPE expects the purchase to double the size of its existing network operation and contribute to more than half of its annual operating income.

Aside from some of HPE's Mist and Aruba product lines, there seems to be little overlap with Juniper.

Approval from the CMA even came a week before the deadline, giving both companies a relatively easy ride. That's not something Meta, Microsoft, Nvidia or others could say.

Microsoft's buy of Activision Blizzard was held up by the CMA. The regulator subsequently said, as it gave the acquisition the greenlight, that it refused to be swayed by "corporate lobbying" and criticized the way Microsoft has engaged with the regulator.

Cap in hand, Microsoft President Brad Smith then said he was "grateful" for the CMA's "thorough review," despite previously calling the process "flawed."

Meta was also in no doubt about the CMA's authority after it was forced to sell Giphy when the deal fell foul of the regulator. ®