US Intelligence Intervened With DOJ To Push HPE-Juniper Merger

Earlier this month, Hewlett-Packard Enterprise settled its antitrust case with the U.S. Justice Department, 'paving the way for its acquisition of rival kit maker Juniper Networks' for $14 billion. According to Axios, the deal was heavily influenced by national security concerns and a desire to bolster American competition against China's Huawei. The outlet reports that the U.S. intelligence community 'intervened to persuade the Justice Department that allowing the merger to proceed was essential to helping U.S. business compete with China's Huawei Technologies, among other national-security issues.' From the report: 'In light of significant national security concerns, a settlement... serves the interests of the United States by strengthening domestic capabilities and is critical to countering Huawei and China.' The official said blocking the deal would have 'hindered American companies and empowered' Chinese competitors. A Justice Department spokesman added that DOJ 'works very closely with our partners in the IC [intelligence community] and always considers their views when deciding how best to proceed with a case.'

The merger was back in the news this week with reports that two senior enforcers in the DOJ's antitrust division were fired Monday amid infighting over the department's settlement greenlighting HPE's $14 billion acquisition of Juniper. Attorney General Pam Bondi had conversations with top intelligence officials that convinced her there was a strong national interest in not driving allies to Chinese technology, a senior administration official tells us.

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