Global Business Travel Group Faces Legal Challenge Over CWT Acquisition

The U.S. Department of Justice has filed a civil antitrust lawsuit aimed at preventing Global Business Travel Group Inc. (Amex GBT) from acquiring CWT Holdings LLC (CWT), a significant player in the business travel management sector. The proposed $570 million acquisition, Amex GBT's fifth since 2018, was filed with the U.S. District Court for the Southern District of New York. The DOJ argues that the merger would stifle competition, particularly as both firms are two of the top three global business travel management providers in the United States, potentially leading to higher prices, decreased innovation, and fewer choices for American businesses relying on these services. The complaint highlights that Amex GBT executives had viewed the merger as a means to curb recent customer losses and that CWT's owners anticipated increased revenue post-merger due to diminished price competition. The suit raises concerns about the consolidation in an already limited market, alleging potential harm to service quality and expense management for global and multinational customers.