Amex GBT to acquire CWT: Regulators waive block, industry divided
A major acquisition in the business travel world is finally moving forward: American Express Global Business Travel (Amex GBT) can complete its $540 million purchase of CWT, after the US Department of Justice (DoJ) dropped its antitrust lawsuit against the transaction.
Green light after legal uncertainty
Amex GBT's CEO, Paul Abbott, stated:
“We are aware that the regulatory review process has created uncertainty for CWT clients and employees. We are now pleased to close the transaction and welcome them to the Amex GBT family.”
Patrick Andersen, CEO of CWT, added:
“We are pleased with the DoJ's decision. We can now fully dedicate ourselves to integration and providing added value to our clients.”
Just a reminder, the DoJ alleged in its lawsuit that the acquisition could harm competition in the business travel management services market for large US and multinational companies, resulting in higher prices and reduced innovation. However, the lawsuit was withdrawn this week, allowing the acquisition to be completed.
The UK has changed its stance
Before the US, the UK's regulatory body, the Competition and Markets Authority (CMA), also withdrew its objections. They initially argued that the deal would reduce choice and increase prices for large clients, but later concluded that CWT was a “significantly weaker player than in the past” and that there were “other alternatives on the market”.
This acquisition, the fifth for Amex GBT since 2018, further cements the company's position as a leading global TMC. However, many experts warn that the real question will be how much benefit this mega-merger will bring to end-users – or, conversely, trigger a domino effect of further consolidation and reduced choice in the business travel market.
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