The Ministry of Justice has moved on Thursday to block Hewlett -Packard Enterprise to the acquisition of $ 14 billion of $ 14 billion.
The government said in a lawsuit filed in the US District Court for the northern California state, “there is a significant risk of greatly reduced competition in the very important technology market.” Agency has stated that the transaction ends the rivalry of companies in the wireless networking industry, which has a low price.
Many Corporate America predicted that a light touch under Mr. Trump would release the transaction wave after a four -year scrutiny by a regulatory authority under the former President Joseph R. Videen Jr. The lawsuit has arrived, but the attempt to stop this week may be more consistent between the Biden administration and the Trump administration on the execution of antitrust law than some people expected. It suggests that there is.
Hewletttt Packard Enterprise, or business software and service companies, HPE, last year, announced JUNIPER $ 14 billion. We hope to take on the data center and JUNIPER's networking business a giant like Cisco.
The regulatory authorities in the UK and the European Union have cleared the contract this summer. However, the Biden administration's anti -trade executor has issued a detailed “second request” and has been scrutinizing transactions.
The lawsuit was brought in by Omeda Assefin, and was tapped to become a substitute for the anti -Trust division of the Ministry of Justice. Gale Slator, a candidate for Mr. Trump's top anti -trade, has not yet been confirmed. Slator used to work as a policy advisor to Vice President JD Vans during his first President of Trump. Vans has praised the efforts of Lina Khan, Chairman of the Trust Transition Committee of Biden, and criticized major technology companies as “too much power.”
Some experts hoped that Mr. Trump's anti -transfer watchdogs would close large social media companies in accordance with ultra -pulsed concerns about speeches and censorship. Hoped that technology companies such as HPEs are more suitable for transactions involving more technical companies. Under the radar.
“The threat caused by the merger is not theoretical,” said Acef. “The important industries of our country, including American hospitals and small and medium -sized enterprises, are dependent on wireless networks to complete the mission.”
Authorities have opposed the integration of companies throughout the economy, and have acquired a large number of regulatory authorities during the Biden administration. Last year, FTC stopped purchasing Albertson for fear of a grocery croger that causes higher food prices, and competition in the “accessible luxury” market with Capri, a two handbag producers. We challenged the merger to promote. In 2022, the Ministry of Justice blocked the purchase of Simon and Chuster by a major publisher penguinandam house.
The institution is not always successful in court. FTC tried to block the purchase of Virtual Reality Startup and stop purchasing Microsoft, a video game publisher. The Ministry of Justice has lost the challenge of UNITEDHEALTH GROUP to purchase a company that supports insurance claims.
Many industry groups have blamed the regulatory authorities that they are stuffy trading for consumers, and hopes the next administration will take another approach. David The Slaf, the highest executive officer of Warner Brothers Discovery, said in July that the next President would “be integrated in what we need to improve to improve the deregulation opportunity. “
