UK CMA Provisionally Clears Amex GBT to Acquire CWT

After months of waiting, the UK’s Competition and Markets Authority (CMA) has provisionally approved the $570 million acquisition of CWT, a global business travel and solutions provider, by the American Express Global Business Travel (AMEX GBT), the largest business travel management company in the world.

AMEX GBT, which is operated by Global Business Travel Group, a leading software and services company for travel, expense, and meetings & events, said that the CMA has concluded that it has not identified any competition concerns with the proposed acquisition of CWT Holdings. The CMA’s final decision is to be announced by 9 March 2025.

However, AMEX GBT is facing a law suit filed in January 2025 by the Antitrust Division of the US Department of Justice (DOJ), seeking an injunction to prevent the proposed transaction.

The DOJ said that Amex GBT’s acquisition of CWTR is the fifth of another travel management company since 2018 and would harm competition for business travel management services to the US global and multinational businesses.

In a complaint filed with the US District Court Southern District of New York, Acting Assistant Attorney General Doha Mekki of the DOJ’s Antitrust Division said that the American businesses rely on travel management companies to connect employees, control travel costs, make travel booking and expense management easier, and ensure their employees’ safety during travel.

“This acquisition is the latest in a series of acquisitions by Amex GBT that will further consolidate an already consolidated market with only a handful of competitive options capable of serving customers with the most need for travel management services. American businesses will face the consequences, seeing higher prices, less innovation and fewer choices,” Mekki said.

Important Milestone

Eric J. Bock, GBT’s Chief Legal Officer and Global Head of M&A said that the provisional conclusions by the CMA is an important milestone toward the consummation of the transaction.

The CMA’s revised findings reinforces the company’s belief that the DOJ’s lawsuit is fundamentally flawed, taking a narrow and outdated view of competition, and disregarding the emergence of numerous significant competitors in business travel, Bock said.

Paul Abbott, Amex GBT’s CEO said that if consummated, this transaction will accelerate investment and innovation in business travel, creating more choice and value for customers and suppliers, and more opportunities for CWT employees.

AMEX GBT has previously announced on 25 March 2024, that it has agreed to acquire CWT, subject to the satisfaction of customary closing conditions, including the receipt of certain regulatory approvals.

Amex GBT is a publicly traded Delaware corporation with its principal executive office located in New York City and its operational headquarters located in London. In 2023, Amex GBT managed a total transaction value of approximately $28.2 billion, earning revenues of $2.29 billion.

CWT Holdings is a privately held company headquartered in Minnetonka, Minnesota. In 2023, CWT managed a total transaction volume of approximately $14 billion, earning revenues of about $850 million.