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HPE CEO: Regulatory probe into Juniper deal is standard process

The UK's Competition and Markets Authority has opened an investigation into whether Hewlett Packard Enterprise's (HPE) planned $14 billion acquisition of Juniper Networks (JNPR) could create competition concerns.

Hewlett Packard Enterprise CEO Antonio Neri joins Market Domination to break down the details of the probe and give insight into how the acquisition will be a tailwind for business.

Neri lays out how the probe will proceed: "We work with the regulator in the UK and basically we work with them to file our approval for the transaction, a standard process. In the UK, you have 60 days to go through that process and the last day for the regulators to come back to us, we are very well engaged is August 14th. So this is standard regulatory process and we are very excited because that means we are in the timelines."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

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This post was written by Nicholas Jacobino

Video Transcript

And Antonio.

Yesterday, a UK regulatory watchdog opened a probe into your potential $14 billion acquisition of Juniper Networks.

Curious where that deal stands in adjustment.

I love the headlines.

The probe.

Actually, it is the standard regulatory process.

Basically, we work with the regulator in the UK, and basically we work with them to file our approval for the transaction standard process in the UK.

You have 60 days to go through that process and the last day for the regulators to come back to us.

We are very well engaged is August 14th.

So this is standard regulatory process.

And we are very excited because that means we are in the timelines we announced at the transaction on January 9.

And in that case, we said that we are going to close this transaction end of this calendar year or beginning of calendar 2025.

So very excited.

This is good.

This is actually really good.

Antonio, I I'm just curious how confident are you that juniper really is gonna create this meaningful tailwind for that networking business?

That that you can really replicate Antonio the success success you had with other acquisitions.

Like Aruba?

Yeah, I mean, first of all, from a shareholder perspective, this is going to provide a twice the size of the current networking business, which obviously the flagship is HP Aruba networking.

So think about it.

We're going to have a business that's $11 billion which will represent 35% of the company's revenue and more than 55% of the company's profit.

So from an investor perspective, this is good because we are operating in margins are structurally, are very different from a customer relevant standpoint.

This is super exciting because it will allow us to provide a true edge to extra scale networking fabric.

So as we go through this massive inflexion point, which is basically the A I, the customers need a modern network architecture.

Because today, even when you deploy a I, you have to manage two different networks the one in the rack or in the A I server or in the I, uh, you know, uh, system itself, and then you need to connect it to the data centre.

And therefore there are two different level of management, and that's complicated.

So with juniper and our networking uh um, IB, we'll be able to collapse that.

And we're going to work with Jensen to integrate the two through the HP Green Lake, um solution and ultimately do it in an A I driven way because we already integrated generative a I in all our solutions, whether it is the networking management, whether it's the server deployment or whether it's the storage management as well.

And the capacity that we deploy for them.

So super excited about that.

Antonio Neri H PE CEO.

Thank you so much.

Thank you.