Why the HPE, Juniper Networks deal is 'problematic'

In This Article:

Former United States Assistant Attorney General Bill Baer joins Catalysts to discuss the Department of Justice's lawsuit aimed at blocking the proposed $14 billion Hewlett Packard Enterprises (HPE) deal to acquire Juniper Networks (JNPR).

"This is pretty much mainstream antitrust merger enforcement," Baer explains. "It is not something that's out of left field."

He points out that if the deal proceeds, the combined companies would control "well over 70% of the US market." Under antitrust law, he argues, this would be considered "unlawful" and "problematic."

While acknowledging that the merger would save each company significant money and potentially enhance efficiency, Baer emphasizes the broader competitive implications.

"It doesn't mean consumers and the businesses that buy from these two companies are going to do better," he says. "And that's really what antitrust is all about: separating what is beneficial to shareholders but may be bad for competition."

To watch more expert insights and analysis on the latest market action, check out more Catalysts here.

This post was written by Angel Smith