US DOJ sues to block Hewlett Packard Enterprise's $14 billion Juniper deal

HPE said early last year that it would buy Juniper Networks for $14 billion in an all-cash deal, as it looks to spruce up the company's artificial intelligence offerings.

The Department of Justice has sued to block Hewlett Packard Enterprise's $14 billion deal to acquire Juniper Networks, according to a complaint filed on Thursday in a federal court in California.

Shares of network equipment maker fell about 3% while the server maker's stock was down about 2%.

The DOJ argued that the acquisition would eliminate competition and would lead to two companies — Cisco Systems and HPE — controlling more than 70% of the U.S. market for networking equipment.

HPE said early last year that it would buy Juniper Networks for $14 billion in an all-cash deal, as it looks to spruce up the company's artificial intelligence offerings.

HPE and Juniper did not immediately respond to requests for comment.

Juniper gained prominence over the past few years as data centers flocked to its products for use in AI applications.