Amex GBT Gets Provisional Approval for CWT Takeover
Deal News | Feb 18, 2025 | EIN
American Express Global Business Travel (Amex GBT), operated by Global Business Travel Group, has received provisional approval from the UK's Competition and Markets Authority (CMA) for its acquisition of corporate travel management firm CWT Holdings. The CMA's revised provisional conclusions suggest the merger is unlikely to substantially lessen competition, altering its initial stance from November. The CMA found CWT to be a weaker competitor than previously assessed, and believes other market players can compete with a combined GBT-CWT entity. The transaction still faces opposition from the U.S. Department of Justice (DOJ), which filed a lawsuit in January over concerns of diminished competition, potentially leading to higher prices and less innovation. Amex GBT remains optimistic about the merger, citing the expanded choice and value it would bring to customers and shareholders. The CMA will finalize its decision by March 9, after a consultation period ending February 25.
Sectors
- Travel Management
- Regulatory
Geography
- United Kingdom – The UK's Competition and Markets Authority (CMA) is involved in reviewing the merger, giving provisional approval.
- United States – The U.S. Department of Justice (DOJ) has filed a lawsuit to block the merger, citing concerns over reduced competition in the travel management sector.
Industry
- Travel Management – The article discusses the acquisition approval process for major travel management companies, Amex GBT and CWT, highlighting the competitive dynamics in the travel industry.
- Regulatory – The involvement of the UK's CMA and the US's DOJ in reviewing and regulating the merger touches on the broader regulatory frameworks governing corporate acquisitions and competition laws.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| American Express Global Business Travel (GBT) | Bidding Company/Buyer | Companies | Amex GBT is seeking to acquire CWT to enhance its position and offerings in the travel management sector. |
| CWT Holdings | Target Company | Companies | CWT Holdings is a corporate travel management company and the target of Amex GBT's acquisition. |
| UK Competition and Markets Authority (CMA) | Regulatory Body | Government | The UK's CMA is responsible for ensuring fair competition in the market and is currently assessing the impact of the merger. |
| U.S. Department of Justice (DOJ) | Opposition | Government | The DOJ has filed a lawsuit to prevent the merger due to antitrust concerns, emphasizing competition law in the sector. |
| Global Business Travel Group | Operator | Companies | Global Business Travel Group operates American Express Global Business Travel. |
| Eric J. Bock | Chief Legal Officer and Global Head of M&A | People | Eric J. Bock is the Chief Legal Officer at Amex GBT and has commented on the CMA's provisional approval of the merger. |
| Phil Abbott | CEO | People | Phil Abbott is the CEO of Amex GBT and has articulated the strategic benefits of the merger with CWT. |