US judge approves HPE's $14 bn takeover of Juniper despite concerns

A US federal judge has approved a settlement allowing Hewlett Packard Enterprise (HPE) to acquire a competitor, Juniper Networks, while finding that both HPE and the US Justice Department violated transparency rules.

The decision on Wednesday brings an end to one of the most hotly contested antitrust cases of President Donald Trump's second term.

The Justice Department initially challenged the $14 billion merger in January 2025, then reversed course and worked on a settlement as the trial approached.

HPE appealed directly to the department's political leadership, with the help of lobbyists close to the Trump administration, after the department's antitrust division rejected a proposed settlement, according to a court document.

Two senior antitrust officials were fired in the aftermath, and the head of the division, Gail Slater, stepped down in February. Her designated successor is still awaiting confirmation.

In a ruling published Wednesday evening, San Jose-based Judge Casey Pitts acknowledged the acquisition "may lessen competition" but said the court "lacks the independent power to prevent that outcome."

The judge also identified two violations of the Tunney Act, a 1974 law that requires a judge to ensure an antitrust settlement serves the public interest.

HPE failed to disclose lobbying efforts targeting the CIA and the Pentagon, and the Trump administration withheld information about alternative remedies it had considered, the ruling said.

The violations do not, however, prevent approval of the settlement, the ruling continued. It said this is because the concealed information was eventually made public by 12 states and the District of Columbia, which intervened in the case.

- Political 'charade'-

HPE and the Trump administration celebrated the judge's ruling.

"We are gratified by the judge's approval of the settlement," a spokesperson for HPE told AFP via email.

"No further action is required," this person continued when asked about the company's next steps.

A senior official in the antitrust division on Thursday denounced the state-led attempt to block the deal.

That lawsuit was a "politically motivated charade" that has "finally come to an end," the official said a statement provided to AFP.

Nonetheless, the decision leaves a regulatory vacuum that states generally hostile to the Trump administration are trying to fill.

"We are disappointed by the court's decision," California Attorney General Rob Bonta said in a statement. "Americans deserve better."

In March, the Justice Department reached a settlement mid-trial with events giants Live Nation without requiring the sale of its ticketing subsidiary Ticketmaster.

Around 30 states then filed their own lawsuit against Live Nation for anticompetitive practices and won.

And in June, the Justice Department closed its investigation into Paramount Skydance's takeover of Warner Bros Discovery, but a dozen states quickly sued, causing the deal to be put on hold while the case proceeds.

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Juniper Networks

HEWLETT PACKARD ENTERPRISE