Justice Department sues to block Houston-based HPE's $14B buyout of Juniper

M&A News

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation. Photo courtesy of HPE

The Justice Department sued to block Hewlett Packard Enterprise's $14 billion acquisition of rival Juniper Networks on Thursday, the first attempt to stop a merger by a new Trump administration that is expected to take a softer approach to mergers.

The Justice complaint alleges that Hewlett Packer Enterprise, under increased competitive pressure from the fast-rising Juniper, was forced to discount products and services and invest more in its own innovation, eventually leading the company to simply buy its rival.

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation.

HPE and Juniper issued a joint statement Thursday, saying the companies strongly oppose the DOJ's decision.

“We will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice, positively change the dynamics in the networking market,” the companies said.

The combined company would create more competition, not less, the companies said.

The Justice Department's intervention — the first of the new administration and just 10 days after Donald Trump's inauguration — comes as somewhat of a surprise. Most predicted a second Trump administration to ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under former President Joe Biden’s watch.

Hewlett Packard Enterprise announced one year ago that it was buying Juniper Networks for $40 a share in a deal expected to double HPE’s networking business.

In its complaint, the government painted a picture of Hewlett Packard Enterprise as a company desperate to keep up with a smaller rival that was taking its business.

HPE salespeople were concerned about the “Juniper threat,” the complaint said, also alleging that one former executive told his team that “there are no rules in a street fight,” encouraging them to “kill” Juniper when competing for sales opportunities.

The Justice Department said that Hewlett Packard Enterprise and Juniper are the U.S.'s second- and third-largest providers of wireless local area network (WLAN) products and services for businesses.

“The proposed transaction between HPE and Juniper, if allowed to proceed, would further consolidate an already highly concentrated market — and leave U.S. enterprises facing two companies commanding over 70% of the market,” the complaint said, adding that Cisco Systems was the industry leader.

Many businesses and investors accused Biden regulatory agencies of antitrust overreach and were looking forward to a friendlier Trump administration.

Under Biden, the Federal Trade Commission sued to block a $24.6 billion merger between Kroger and Albertsons that would have been the largest grocery store merger in U.S. history. Two judges agreed with the FTC’s case, blocking the proposed deal in December.

In 2023, the Department of Justice, through the courts, forced American and JetBlue airlines to abandon their partnership in the northeast U.S., saying it would reduce competition and eventually cost consumers hundreds of millions of dollars a year. That partnership had the blessing of the Trump administration when it took effect in early 2021.

U.S. regulators also proposed last year to break up Google for maintaining an “abusive monopoly” through its market-dominate search engine, Chrome. Court hearings on Google’s punishment are scheduled to begin in April, with the judge aiming to issue a final decision before Labor Day. It’s unclear where the Trump administration stands on the case.

One merger that both Trump and Biden agreed shouldn’t go through is Nippon Steel’s proposed acquisition of U.S. Steel. Biden blocked the nearly $15 billion acquisition just before his term ended. The companies challenged that decision in a federal lawsuit early this year.

Trump has consistently voiced opposition to the deal, questioning why U.S. Steel would sell itself to a foreign company given the regime of new tariffs he has vowed.

Elizabeth Gerbel, CEO and founder of Houston-based E.A.G. Services Inc., shares how to navigate M&A activity for both startups and large companies. Pexels

All is not lost in a merger or acquisition, says this Houston energy exec

Guest column

Nervous about an upcoming merger or acquisition? You're not alone. Last year, there were nearly 15,000 mergers and acquisitions in the U.S., according to the Institute for Mergers, Acquisitions and Alliances. These transactions, although executed with optimistic intentions, don't always work out. What is it that separates those that deliver from those whose results simply fall flat?

While you won the legal battle, the real culprit to a failed merger or acquisition transaction lies in post-deal activities such as integrating the divesting company's assets into the acquiring company's existing systems, processes, and organizational structure. If executed poorly, companies could face several hurdles, including:

  • Increased acquisition costs
  • Loss in previously efficient business processes
  • Reduced data quality in current and acquired assets
  • Extended TSA timeline

With the stakes being high, it is critical for each step of a merger or acquisition to be rock solid before moving on to the next stage. In fact, when executed successfully, an M&A transaction can significantly benefit both companies — from startups to well-established corporations.

A strategy for M&A data integration

In order to facilitate efficient and effective merger or acquisition, the critical success factors focus on these driving goals: Minimizing organizational disruption and Maximizing ROI. To achieve these goals, we execute three main stages for every merger and acquisition.

  1. Planning
  2. Analysis
  3. Execution

We start with thorough planning, think of planning as the foundation for a successful merger or acquisition. Without a good plan, the company will be vulnerable to all sorts of structural weaknesses. To prevent key elements from falling through the cracks, companies must define objectives and data requirements, maintain strong communications, and develop both short-term and long-term expectations.

The next step – analysis – since data is absolutely essential in mergers and acquisitions. There is a lot to watch out for: What's the best way to extract and convert the acquired data? Will IT or business support need to be permanently added? What system configuration changes are required? What are the impacts to current business processes and internal audit controls? Will additional training be required? The answers to these questions are highly individualized to each merger and acquisition, and they'll impact how seamless the transition will be. Many people gloss over this stage but then realize the criticality not only in the case of a merger or acquisition but also in the case of a future divestiture.

Finally, the last stage: Execution. This stage is one of the main reasons why some mergers and acquisitions may fall short of expectations. To avoid common issues stemming from poor execution – including disruption of previously effective business processes, impaired customer service, and increase in the cost of the merger or acquisition – we coordinate roles and responsibilities, ensuring that all key tasks are executed. From day one to full integration, we continually monitor to ensure the company is on track to meet its initially defined objectives.

The risks and benefits of a merger or acquisition

I'll be candid: Without a solid foundation through adequate preparation, a merger or acquisition is set up to fail. This risk can be higher for startups and small companies, which don't have the resource buffer that some larger firms can fall back on. Large companies may face a different risk, business processes and data may not be aligned with their current state. And yet, according to Economy Watch, an extensively strategized merger or acquisition transaction, beyond increasing the company's size, can yield significant benefits that include:

  • Improving its strategic position
  • Entering a new market
  • Developing new assets
  • Lowering operational costs
  • Expanding market influence

For smooth mergers and acquisitions, we recommend a multi-step process so that you can identify and reduce risks, condense your integration timeline, and quickly capture value. Because despite the challenges, not all is lost during a merger or acquisition – and there is much to be gained.

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Elizabeth Gerbel is the CEO and founder of Houston-based E.A.G. Services Inc.

International beauty giant Shiseido Company Ltd. has acquired Houston-founded Drunk Elephant. Photo via Business Wire

Houstonian's skincare line acquired for $845 million

A beautiful acquisition

A skincare line with ties to Houston is joining the ranks of other popular beauty brands this week. International beauty giant Shiseido Company Ltd. has announced that it is acquiring Drunk Elephant in a reported $845 million deal.

Houstonian Tiffany Masterson, chief creative officer, founded the company in Houston in 2012. The quality of products and playful branding attracted a broad range of demographics as the company experienced exponential growth.

"I started this business as an industry outsider, and from the beginning I did things a little differently," Masterson says in a news release. "To join with a powerhouse beauty company such as Shiseido that leads the industry in innovation and global excellence is a dream come true for me and for Drunk Elephant. We share similar values, most importantly an unwavering commitment to the consumer. I chose a partner who will let the brand continue to be itself, with the same formulations and the same team."

According to the release, the acquisition will allow Drunk Elephant's products to expand more throughout America, and enter new markets in Asian and Europe. The new subsidiary will also have support from Shiseido's Global Innovation Center and Digital Center of Excellence.

"This transaction is squarely aligned with Shiseido's VISION 2020 goal of accelerating growth and creating value through strategic partnerships," says Masahiko Uotani, president and CEO of Shiseido, in a news release. "I am very pleased to welcome Tiffany and the Drunk Elephant team to the Shiseido Family and together, pursue our long-term mission of 'Beauty innovations for a better world.'"

Masterson will maintain her role as chief creative officer and add the title of president for the company. She will report to Marc Rey, CEO of Shiseido Americas and chief growth officer of Shiseido.

"Drunk Elephant is built on a strong brand foundation and a unique philosophy that fits perfectly with Shiseido's values and skincare heritage," Rey says in the release. "Our innovative and people-first cultures are well aligned, and we share an unwavering commitment to our consumers. I also believe the brand will contribute to the business performance of Shiseido Americas."

The beauty industry is having a bit of a moment right now as consumers — who have shelves and shelves of products to choose from — are drawn to specific products.

"While reasons for acquisitions in the beauty space vary, we are seeing that some of the big players are seeking to balance their portfolios by creating products and services that consumers find relevant," says Laura Gurski, Accenture's global lead for consumer goods and services, in a statement.

"It is crucial that brands completely reinvent the beauty experience, making it much more than a transactional event," she continues. "This is what startups and disruptors do best. They create a collaboration with each consumer, allowing them to participate and experience products, services and brands in new ways."

According to Accenture Strategy's research on M&A in consumer goods, companies acquiring new capabilities represents 47 percent of activity and new technologies represents 35 percent of activity. These figures are on par with more traditional reasons for M&A, like new industries (43 percent) and new geographic markets (37 percent).

"For the first time, beauty companies have the opportunity to achieve real differentiation by taking their relationships with consumers to a completely new level," Gurski says.

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Rice scientist earns $600K NSF award to study distractions in digital age

fresh funding

Rice University psychologist Kirsten Adam has received a $600,000 National Science Foundation CAREER Award to research how visual distractions like phone notifications, flashing alerts, crowded screens and busy workspaces can negatively impact focus—and how the brain works to try to regain it.

The highly competitive five-year NSF grants are given to career faculty members with the potential to serve as academic models and leaders in research and education. Adam’s work will aim to clarify how the brain refocuses in the age of screens, instant gratification and other lingering distractions. The funding will also be used to train graduate students in advanced cognitive neuroscience methods, expand access to electroencephalography (EEG) and for public data sharing.

“Kirsten is a valued member of the School of Social Sciences, and we are thrilled that she has been awarded the prestigious NSF CAREER,” Rachel Kimbro, dean of social sciences, said in a news release. “Because distractions continue to increase all around us, her research is timely and imperative to understanding their widespread impacts on the human brain.”

In Adam’s lab, participants complete simplified visual search tasks while their brain activity is recorded using EEG, allowing researchers to measure attention shifts in real time. This process then captures the moment attention is drawn from a goal and how much effort it takes to refocus.

According to Rice, Adam’s work will test long-standing theories about distraction. The research is meant to have real-world implications for jobs and aspects of everyday life where attention to detail is key, including medical imaging, airport security screening and even driving.

“At any given moment, there’s far more information in the world than our brains can process,” Adam added in the release. “Attention is what determines what reaches our awareness and what doesn’t.”

Additionally, the research could inform the design of new technologies that would support focus and decision-making, according to Rice.

“We’re not trying to make attention limitless,” Adam added. “We’re trying to understand how it actually works, so we can stop designing environments and expectations that fight against it.”

12 Houston climatetech startups join Greentown Labs' growing incubator

Startup Talk

More than 40 climatetech startups joined the Greentown Labs Houston community in the second half of 2025, 12 of which hail from the Bayou City.

The companies are among a group of nearly 70 total that joined the climatetech incubator, which is co-located in Houston and Boston, in Q3 and Q4.

The new companies that have joined the Houston incubator specialize in a variety of clean energy applications, from green hydrogen-producing water-splitting cycles to drones that service wind turbines.

The local startups that joined Greentown Houston include:

  • Houston-based Wise Energie, which delivers turnkey microgrids that blend vertical-axis wind, solar PV, and battery storage into a single, silent system.
  • The Woodlands-based Resollant, which is developing compact, zero-emissions hydrogen and carbon reactors to provide low-cost, scalable clean hydrogen and high-purity carbon for the energy and manufacturing sectors.
  • Houston-based ClarityCastle, which designs and manufactures modular, soundproof work pods that replace traditional drywall construction with reusable, low-waste alternatives made from recycled materials.
  • Houston-based WattSto Energy, which manufactures vanadium redox flow batteries to deliver long-duration storage for both grid-scale projects and off-grid microgrids.
  • Houston-based AMPeers, which delivers advanced, high-temperature superconductors in the U.S. at a fraction of traditional costs.
  • Houston-based Biosimo, which is developing bio-based platform chemicals, pioneering sustainable chemistry for a healthier planet and economy.
  • Houston-based Ententia, which offers purpose-built, generative AI for industry.
  • Houston-based GeoKiln Energy Innovation, which is developing a new way to produce clean hydrogen by accelerating natural geologic reactions in iron-rich rock formations using precision electrical heating.
  • Houston-based Timbergrove, which builds AI and IoT solutions that connect and optimize assets—boosting visibility, safety, and efficiency.
  • Houston-based dataVediK, which combines energy-domain expertise with advanced machine learning and intelligent automation to empower organizations to achieve operational excellence and accelerate their sustainability goals.
  • Houston-based Resonant Thermal Systems, which uses a resonant energy-transfer (RET) system to extract critical minerals from industrial and natural brines without using membranes or grid electricity.
  • Houston-based Torres Orbital Mining (TOM),which develops autonomous excavation systems for extreme environments on Earth and the moon, enabling safe, data-driven resource recovery and laying the groundwork for sustainable off-world industry.

Other startups from around the world joined the Houston incubator in the same time period, including:

More than 100 startups joined Greentown this year, according to an end-of-year reflection shared by Greentown CEO Georgina Campbell Flatter.

Flatter joined Greentown in the top leadership role in February 2025. She succeeded former CEO and president Kevin Knobloch, who stepped down in July 2024.

"I moved back to the United States in March 2025 after six years overseas—2,000 miles, three children, and one very patient husband later. Over these months, I’ve had the chance to hear from the entrepreneurs, industry leaders, investors, and partners who make this community thrive. What I’ve experienced has left me brimming with urgent optimism for the future we’re building together," she said in the release.

According to Flatter, Greentown alumni raised more than $2 billion this year and created more than 3,000 jobs.

"Greentown startups and ecosystem leaders—from Boston, Houston, and beyond—are showing that we can move further and faster together. That we don’t have to choose between more energy or lower emissions, or between increasing sustainability and boosting profit. I call this the power of 'and,'" Flatter added. "We’re working for energy and climate, innovation and scale, legacy industry and startups, prosperity for people and planet. The 'and' is where possibility expands."

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This article originally appeared on EnergyCaptialHTX.com.

Intuitive Machines forms partnership with Italian companies for lunar exploration services

to the moon

Houston-based space technology, infrastructure and services company Intuitive Machines has forged a partnership with two Italian companies to offer infrastructure, communication and navigation services for exploration of the moon.

Intuitive Machines’ agreement with the two companies, Leonardo and Telespazio, paves the way for collaboration on satellite services for NASA, a customer of Intuitive Machines, and the European Space Agency, a customer of Leonardo and Telespazio. Leonardo, an aerospace, defense and security company, is the majority owner of Telespazio, a provider of satellite technology and services.

“Resilient, secure, and scalable space infrastructure and space data networks are vital to customers who want to push farther on the lunar surface and beyond to Mars,” Steve Altemus, co-founder and CEO of Intuitive Machine, said in a news release.

Massimo Claudio Comparini, managing director of Leonardo’s space division, added that the partnership with Intuitive Machines is a big step toward enabling human and robotic missions from the U.S., Europe and other places “to access a robust communications network and high-precision navigation services while operating in the lunar environment.”

Intuitive Machines recently expanded its Houston Spaceport facilities to ramp up in-house production of satellites. The company’s first satellite will launch with its upcoming IM‑3 lunar mission.

Intuitive Machines says it ultimately wants to establish a “center of space excellence” at Houston Spaceport to support missions to the moon, Mars and the region between Earth and the moon.

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