Let's take a quick look at shares of HPE and Juniper Networks. The DOJ yesterday announcing it's suing to stop the fourteen billion dollar acquisition of Juniper Networks, arguing the merger would harm competition in the market for enterprise wireless equipment. We're rallying off the back of some fools yesterday joining us now, Antonio Nairy, HPE CEO, and you have fought back saying the DOJ is ignoring key competitors here. Why are they doing that?
Welcome on to Kara, and thank you for having me. We believe the thesis from the EJ is flawed because they consider the market very narrowly in the wireless line, only three competitors, when the reality there are eight. You know, even industry analysts came out yesterday, you know, stating that that's the case. So as we go in through the process, we understood that that's going to be a challenge, but ultimately we believe there is no case here. This is
pro competitive. We'll bring it too complementary technologies together, which so will enable us to compete outside the United States. In the context of the previous conversation we have with Josh against the Chinese vendors in the context of national security, particularly in cloud and the service provider space. So that's why we're going to fight this vigorously and we believe we're going to prevail through the process.
Do your lawyers think you will prevail? It's interesting, of course other regulators signed this off, so it must have been a surprise.
Yeah, it was a surprise because fourteen of these sixteen jurisdictions around the globe approved the deal pretty much by September last year, which was very very quick. You know, since the announcement was January nine, twenty twenty fourth, and that included in the UK and the European Union. They never asked for a second request. Customer testimony was always in favor of the transaction, and that's why, you know, since September we were pretty much substantially complete with the
DJA process. But obviously it's through the elections and the like we took us to today and then you know, when I meet with the DOJ on Tuesday, nothing new came out of that conversation, and therefore, you know, we are surprised and disappointed, but ultimately we believe this is pro competitive and we believe this is the interested on the national security in alignment with the current administration agenda, and that's why from a puran the trust perspective, we
believe we have a case here for us.
And tell you, did you try in the course of those conversations with the Justice Department ahead of the losses being filed to negotiate something or perhaps offer concessions. What might those have been and what did DOJ ask you for?
No, it was not necessary and the DOJ never asked for any concessions whatsoever. They asked us through the process several extensions, but we never discussed remediation or any concessions as part of the proval.
Are you a little surprised them by the current administration actually following through with this case. You pointed to its posture when it comes to competitiveness in the US and trying to foster investment. How does this square with what the President, for instance, would be talking about when it comes to business.
Well, Mike, we don't have yet the permanent leaders, neither of the DOJ nor at the Antitrust Division, so we're looking forward to have them on board. We hope that they will take a second look at the case and realize that this transaction is core tech, no big tech. Remember that both Juniper Networks and HP powers a lot of the United States infrastructure in the Department of Defense, Department of Energy, and many other administrations across the government.
And so we're hopeful that when the administration is in charge, they're going to look at this and take a second look and realize this is aligned perfectly with the agenda that the President has America First, building the United States. Let's remind yourself a lot of the equipment that HP produces today for the United State governments building the United States and also outside the United States to compete with China.
The reason why the market looks the way it looks in the United States, which is eight vendors, and this is data from the industry analysts, which we provided obviously tremendous amount of documentation, is because Worldwide is not allowed to play in the United States, but when you go outside the United States, they're actually nine menders.
It does feel like China continues to be the bogeyman that a lot of companies are going to turn on to try and get things through. And ultimately I put to you that James McHenry, who's the acting Attorneys General at the moment in the US, probably want to pursue this and as it got some sort of sign off from the new administration, more pro business administration. So do you think really this is going to land any differently with Hamboni.
We don't know, Karen. I will not speak related to that. Excuse me for my voice. I will not speculate in that. You know, we have dealt with the Department of Energy Anti Trust Division. We were very collaborative, constructive throughout the process, and we hope that the new administration one is in charge, they're going to look at this and they will bring us back at the table. Otherwise, you know, we will
pursue the actions through the court. They were the ones decided to file the lawsuit to block the transaction, and we believe we have the right to defend ourselves there and we believe that we can prevail through the just the anti trust aspect of the case. And then in addition to that, we hope that also the national security aspects of this are considered as well.
Hpe CEO Antonio Neri, thank you.