Nov 18 (Reuters) – A group of U.S. states can intervene in a case over Hewlett-Packard Enterprise’s (HPE.N), opens new tab $14 billion acquisition of Juniper Networks (JNPR.MX), opens new tab, which the U.S. Department of Justice has proposed to settle and let the deal move forward, a judge said during a hearing on Tuesday.
U.S. District Judge Casey Pitts in San Jose, California said Colorado and other states can weigh in on the deal, but did not decide whether he will probe the circumstances under which it was reached.
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An HPE spokesperson said the company disagrees with the ruling, but is confident “that an objective examination of the facts of this case will conclude that the settlement was reached appropriately.”
Shortly after President Donald Trump took office in January, the DOJ sued to block the deal, alleging it would stifle competition and lead to only two companies – Cisco Systems (CSCO.O), opens new tab and HPE – controlling more than 70% of the U.S. market for networking equipment.
The DOJ agreed to drop its claims in June ahead of a scheduled trial in exchange for HPE agreeing to license some of Juniper’s AI technology to competitors and sell off a unit that caters to small and mid-sized businesses.
Colorado and a group of states have called on Pitts to probe the role lobbyists with ties to the Trump administration played in the settlement, and whether the proposal addresses the DOJ’s initial concerns about the deal. Democratic lawmakers and some former Department of Justice attorneys have also criticized the settlement.
Last week, the DOJ proposed additional terms requiring that HPE sell its Instant On wireless networking business to a viable competitor and barring HPE from buying it back for ten years.
Reporting by Jody Godoy in New York; Editing by Chris Reese, Nick Zieminski and Kevin Buckland
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Jody Godoy reports on tech policy and antitrust enforcement, including how regulators are responding to the rise of AI. Reach her at jody.godoy@thomsonreuters.com
