Week Ahead 22 July

W/C Monday, 22 July – European Commission likely to announce decision on HPE’s $14 billion acquisition of AI firm Juniper 

This week, the European Commission is likely to announce its decision on whether to allow the $14 billion acquisition of AI firm Juniper by the Texas-based Hewlett-Packard Enterprise (HPE).  

Announced in January, the deal aims to enhance HPE's artificial intelligence products and double its networking business, reflecting the industry's growing focus on AI as a major growth driver. HPE’s President and CEO Antonio Neri, by joining forces with Juniper, they would ‘’radically change the networking industry - not by eliminating products from either portfolio—but by creating greater choice in this sector’’.  To address potential competition concerns, HPE is expected to highlight the presence of market leader Cisco, a significant rival to Juniper. 

The parties filed a notice of the proposed deal to the European Commission on 27 June.  Although the Commission’s deadline for Phase 1 of the deal is on 1 August, a decision could take place as early as this week.  Additionally, the UK competition watchdog is also reviewing the deal, with a decision expected by 14 August. 

W/C Monday, 22 July – European Commission likely to rule on BPost’s 1.3 billion acquisition of French logistics company Staci 

Also this week, the European Commission could rule on BPost’s €1.3 billion acquisition of the French logistics company Staci from a fund managed by Ardian France. Announced in April, the deal is part of Bpost's strategy to address the changing dynamics of last-mile delivery. Staci, active in warehousing, distribution, freight forwarding, and value-added services for B2B, B2C, D2C, and e-commerce, reported €771 million in revenues in 2023 with a 14% margin. Staci's management team, led by CEO Thomas Mortier, will reinvest alongside Bpost and remain with the company.   

Facing structural challenges in recent years, Belgium-HQed Bpost aims to transform its business model. Bpost sees the acquisition of Staci as a major step in its transformation from a postal service provider to an international third-party logistics provider, focusing on flexible, high-value logistics. The Belgian government holds a 51% majority share of Bpost, with the remainder split among various investors, including Vanguard Group, Schroder Investment, and Dimensional Fund. 

Although DG Comp has a decision deadline of 30 July, a decision may come by Friday. 

Tuesday, 23 July – Constitutive meetings of new European Parliament Committees 

On Tuesday, the European Parliament’s committees will hold their constitutive meetings, following the first plenary in Strasbourg last week, which saw EPP’s Roberta Metsola securing her re-election at its helm with 562 votes. More importantly, Ursula von der Leyen was elected for a second term as the Commission’s President with a strong parliamentary majority (401 votes), following a series of tactical concessions to secure the support of the Greens. This week’s meetings will include a formal vote for the chairs and vice-chairs of the committees, albeit the Parliament’s political groups have already reached a provisional agreement on committee chairmanships.  

As the largest group in the Parliament with 188 seats, the European People’s Party (EPP) has secured six committees, including Foreign Affairs (AFET), Civil Liberties (LIBE), Budgetary Control (BUDG), Industry, Research and Energy (ITRE), Fisheries (PECH), Constitutional Affairs (AFCO), and the Public Health subcommittee (SANT). The Socialists and Democrats (S&D), who maintained their status as the second largest group with 136 seats, are aiming to chair the Environment (ENVI), International Trade (INTA), Economic and Monetary Affairs (ECON), Regional Development (REGI), and Women’s Rights (FEMM) committees. The newly-formed far-right Patriots for Europe are claiming the Transport (TRAN) and Culture and Education (CULT) committees after becoming the third largest group. However, EPP is currently in talks with S&D and the centrist Renew Europe to block far-right MEPs from high-profile positions, implementing the so-called ‘’cordon sanitaire’’. 

The European Conservatives and Reformists (ECR) are expected to chair the Petitions (PETI), and Agriculture (AGRI) committees. Renew Europe is eyeing the Development (DEVE) and Legal Affairs (JURI) committees. The Greens/EFA have Anna Cavazzini likely to remain as chair of the Internal Market (IMCO) committee, and French ecologist Mounir Satour is expected to chair the Human Rights subcommittee (DROI). The Left group is seeking control of the Taxation Subcommittee and the Employment (EMPL) committee. 

Tuesday, 23 July – CSO to release figures on data centres electricity consumption in Ireland 

Tomorrow, the Irish Central Statistics Office (CSO) is set to release its figures on the annual electricity consumption of data centres in Ireland. Ireland is recognised as a leading host of data centres in Europe, which have contributed more than €7.3 billion to the Irish economy. 

Nevertheless, growing demand is posing a challenge to the country's energy infrastructure and climate objectives. According to the CSO’s previous estimates, data centres consumed electricity equivalent to that of urban households in 2021, marking a 31% increase in their energy use. The following year, 2022, data centres’ electricity consumption rose by 31% compared to 2021, with 18% of Ireland’s total electricity demand coming from this sector.  

In response to reports predicting data centres could consume up to 70% of Ireland's power by 2030, the Irish government introduced a new policy in 2021 to scrutinise data centre plans more closely, limiting new data connections to the electricity grid.  The opposition, especially parties like the Social Democrats have called for a government-imposed moratorium on further data centre expansion and increased oversight of the sector, pointing out that approximately 75 data centres in operation consumed four times more electricity in the last quarter of 2022 compared to the same period in 2015. However, the government has ruled out a cap on data centres, arguing that data storage and data centres are essential for the country’s medium-term vision for its tech-based economy. 

The release of the 2023 data this week is anticipated to spark further public debate on whether stricter limits should be imposed on data centres, highlighting the ongoing tension between economic growth and sustainable energy practices.