Department of Justice settles with HPE and Juniper Networks: What you need to know
The Department of Justice has reached a settlement in its lawsuit that challenged server maker Hewlett-Packard Enterprise's takeover of Juniper Networks for $14 billion, as per court filings. This comes when a trial was set to start in the matter in less than two weeks, Bloomberg reported. In an official release, the US Justice Department stated that it advised the court that a settlement was made with the two companies, adding that it allows their merger to continue. The Department of Justice has settled its lawsuit against Hewlett-Packard Enterprise's $14 billion acquisition of Juniper Networks. Photographer: Ian Maule/Bloomberg(Bloomberg)
Gail Slater, Assistant Attorney General for the Antitrust Division, has thanked all from the department for their work on the case.
Department of Justice Chief of Staff Chad Mizelle dubbed it "another key legal victory" for the division. "Our attorneys will continue fighting and winning to defend the American people and consumers,' Mizelle added.
Also Read: Iran reopens central and western airspace after ceasefire with Israel: What does this mean for international flights? HPE, Juniper Networks reach settlement with Justice Department
As part of the settlement, the combined company is required to divest HPE's Instant On wireless networking business as well as license the source code for Mist AI software of Juniper Networks. This is used in the company's Wireless Local Area Network (WLAN) products.
The joint settlement was filed late Friday night and is now seeking the approval of a judge. This could avoid the matter going to court for the scheduled trial on July 9.
A joint statement from the two companies stated that Hewlett Packard Enterprise had on January 9, 2024, announced the agreement to acquire Juniper in "an all-cash transaction". This was made for $40 per share, which represented the equity value of nearly $14 billion.
They said that the agreement has now cleared the way for the transaction to close as it has resolved the concerns of the US Justice Department.
Antonio Neri, president and CEO of HPE, said the agreement creates "greater competition in the global networking market,' besides offering customers a "modern network architecture alternative" to support the demands of AI workloads.
The department filed a complaint against the deal in the federal court in late January 2025. It claimed that the deal would stifle competition, thus paving the way for only two companies, Cisco Systems and HPE, to control over 70 per cent of the US market for networking equipment, according to Reuters.
A few weeks later, Juniper denied these allegations, stating that it failed to correctly represent the market dynamics for wireless network solutions. FAQs
1. When and where was the trial set to take place in the matter?
It was scheduled to start on July 9 in San Jose, California.
2. What does the Justice Department's settlement mean for HPE and Juniper?
This allows their merger to continue.
3. What's the merger deal?
In January last year, HPE said that an agreement was reached to acquire Juniper in an all-cash transaction for nearly $14 billion.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
21 minutes ago
- First Post
Canada ‘elbows up' as Carney backs down on digital tax to have trade deal with Trump
Canada has dropped its plan to tax US tech firms and resumed trade talks with America. The move has left many Canadians disillusioned, as the 'elbows up' slogan that once signalled standing firm against US pressure has now become merely symbolic. read more US President Donald Trump and Canadian Prime Minister Mark Carney. The Canadian PM earlier in May said his government is talking to the US about joining the Golden Dome missile defence program. AFP 'Elbows up', a slogan that began as a protest against President Donald Trump's tariffs, has now become somewhat ironic after Canada resumed trade talks with the US. Prime Minister Mark Carney announced that his government had dropped its plan to tax American technology companies. Many Canadians took to social media to share their disappointment, with some calling the move an 'elbows down' decision. Others mocked the government, posting comments such as: 'Good job, Liberals! You got duped! 'Elbows up' actually means tariffs up!' STORY CONTINUES BELOW THIS AD 'We are starting to get a sense of the character of the government and that it is a kind of chicken dance government. It is elbows up, elbows back down, elbows up, elbows back down.' — Garnett Genuis (@GarnettGenuis) June 30, 2025 'We are starting to get a sense of the character of the government, and that it's a kind of chicken-dance government. It's elbows up, elbows back down, elbows up, elbows back down,' said Canada's Shadow Minister of Employment, Garnett Genuis. Origins of 'elbows up' slogan 'Elbows up' became a slogan Canadians used to show resistance against US trade pressure. The phrase comes from hockey, where players keep their elbows up to protect themselves and hold their ground in tight situations. It grew popular after comedian Mike Myers used it in a sketch on Saturday Night Live, and Prime Minister Mark Carney echoed it in speeches to signal Canada's determination during disputes over US tariffs and political tensions. Started in hockey, meaning to protect yourself and push back Became a national slogan, appearing on signs, merchandise, and in political speeches, reflecting Canada's resolve to defend its economic and political interests Trade talks back on track as Carney backs down Canadian Prime Minister Mark Carney said on Sunday that trade talks with the United States have resumed after Canada dropped its plan to tax American tech companies. US President Donald Trump had paused trade discussions on Friday because of Canada's proposed Digital Services Tax, which he called 'a direct and blatant attack on our country.' The Canadian government announced it would cancel the tax 'in anticipation' of a trade deal. The tax was due to take effect on Monday. Carney's office confirmed that he and Trump had agreed to restart negotiations. STORY CONTINUES BELOW THIS AD 'Today's announcement will help resume talks aiming for the 21 July 2025 deadline we set at this month's G7 Leaders' Summit in Kananaskis,' Carney said in a statement.
&w=3840&q=100)
Business Standard
22 minutes ago
- Business Standard
Canada resumes trade talks with US following suspension of tech tax plan
Trade talks between Canada and the United States are back on track following Canada's decision to withdraw its proposed digital services tax targeting American technology companies, Canadian Prime Minister Mark Carney said on Monday. This development follows US President Donald Trump's decision on Friday (June 27) to halt discussions, criticising Canada's digital tax plan as 'a direct and blatant attack on our country'. The Canadian government confirmed it would cancel the implementation of the Digital Services Tax, which had been scheduled to take effect Monday, citing the move as a gesture made 'in anticipation' of securing a broader trade agreement, Associated Press reported. According to Carney's office, both leaders have now agreed to move forward with talks. 'This decision paves the way for renewed negotiations aimed at meeting the July 21, 2025 deadline that was outlined during this month's G7 Leaders' Summit in Kananaskis,' Carney said in an official statement. Carney previously met with President Trump at the White House in May, where their discussions were described as cordial but assertive. Trump later visited Canada for the G7 summit in Alberta, where both sides agreed to a 30-day timeframe to finalise key aspects of the trade deal. Digital tax draws US ire Trump, in a post on his social media platform on Friday said that Canada had notified the United States of its intention to move forward with implementing a digital services tax. The measure would target both domestic and international companies that interact with Canadian online users. The proposed tax, set at 3 per cent, would have impacted major tech firms such as Amazon, Google, Meta, Uber, and Airbnb. It was also designed to be retroactive, potentially resulting in American companies receiving a combined bill of approximately $2 billion by the end of the month, Associated Press reported. Tariffs remain a point of contention Ongoing negotiations between the US and Canada have also focused on a series of tariffs Trump previously imposed. These include 50 per cent duties on steel and aluminium and a 25 per cent levy on automotive imports. Additionally, a 10 per cent tariff on imports from several countries remains in effect, with the potential for rate hikes after July 9, once a 90-day negotiation window ends. Under measures aimed at curbing fentanyl smuggling, Canada and Mexico are also subject to additional tariffs of up to 25 per cent. However, certain goods remain shielded by provisions in the 2020 United States-Mexico-Canada Agreement, which was signed during Trump's first presidential term.
Mint
26 minutes ago
- Mint
US won't extend tariff pause: Trump warns ‘letters' will replace trade negotiations as tariff deadline nears, ‘Dear Mr…'
US President Donald Trump has signalled letters may replace formal trade agreements soon as White House lacks progress in trade talks with several countries as July 9 deadline looms. US has been able to strike trade deal only with China and the United Kingdom. On Monday, 30 June, US restarted trade talk with Canada. US President Donald Trump has shown no concrete progress towards his self-imposed goal of signing 90 trade deals in 90 days, a bold promise he made earlier this year while rolling out aggressive so-called 'reciprocal tariffs' on key American trading partners. With the deadline just days away on 9 July, critics and economists alike are raising concerns about the growing economic fallout. 'I'm going to send letters, that's the end of the trade deal,' Donald Trump told host Maria Bartiromo after she pressed him for clarity on his trade strategy. Bartiromo, seeking confirmation, responded: 'You're gonna send the letters.' In a particularly striking moment, US President Trump even rehearsed one such letter aloud, mocking his intended message to Japan—a country he has frequently criticised on trade. 'Dear Mr. Japan, here's the story. You're going to pay a 25% tariff on your cars.' US President Donald Trump characterized trade in cars between the US and Japan as unfair and floated the idea of keeping 25% tariffs on autos in place, little more than a week before higher duties are set to kick in across the board if a deal isn't reached. 'So we give Japan no cars. They won't take our cars, right? And yet we take millions and millions of their cars into the United States. It's not fair,' Trump said. 'Now, we have oil. They could take a lot of oil. They could take a lot of other things,' he said, referring to ways Japan might reduce the US trade deficit. Tokyo's top trade negotiator, Ryosei Akazawa has repeatedly said that the US's 25% tariffs on cars are unacceptable, saying that Japan's car industry has made an enormous contribution to the US economy through the investment of more than $60 billion and the creation of 2.3 million local jobs. Trump's unpredictable approach has earned him a tongue-in-cheek nickname on Wall Street: 'TACO' – Trump Always Chickens Out. The moniker emerged earlier this year when markets plunged following his sudden tariff announcements, only to rebound after the White House granted a three-month pause on enforcement. Although the president has remained vague about the future of the tariffs, Donald Trump said last week that he was considering extending the 90-day freeze, a move that could further delay economic disruption but also prolong uncertainty. Despite the high-stakes rhetoric, the White House has made limited headway in striking formal trade deals. While the UK and US announced a tentative agreement in May, it left unresolved issues around steel and aluminium imports. The only notable exception is China, where US officials announced the framework of a new agreement last week. However, details remain scarce. Treasury Secretary Scott Bessent told Fox Business Network that the US had secured an end to China's trade barriers on rare earth minerals. China's Ministry of Commerce, according to the Associated Press, stated: 'China will, in accordance with the law, review and approve eligible export applications for controlled items. In turn, the United States will lift a series of restrictive measures it had imposed on China.' With tariff deadlines approaching and few new trade deals in place, US economists are warning of a looming economic crunch. Many predict price increases across consumer goods if tariffs are reinstated, potentially triggering stagflation—a toxic mix of rising prices and falling employment.
