UK competition watchdog clears Amex GBT-CWT corporate travel merger

An independent UK inquiry group has given the green light to the merger of corporate travel giants Global Business Travel (Amex GBT) and CWT.

A statement from the UK Competition and Markets Authority said on Thursday (March 6) that the group had decided the merger “should be allowed to proceed”.

Amex GBT is the largest business travel management company in the world, while CWT is the third largest.

“The group has concluded that CWT is a significantly weaker competitor than in the past and is likely to continue to weaken in the future and that there are other suppliers who will offer customers an alternative to the merged business,” said the statement.

“The group is therefore satisfied that the merger is not expected to result in a substantial lessening of competition in the global market for the supply of business travel agency services and has cleared the deal.”

Martin Coleman, chair of the independent panel of experts conducting the investigation, said: “Having reviewed all the evidence thoroughly over the course of our investigation we have concluded, given the weaker position CWT plays in the corporate travel market and the alternatives available, that this deal should be allowed to proceed.”

In January, the US Justice Department filed a civil antitrust lawsuit in an effort to block the $570 million takeover of CWT by rival Amex GBT.

The complaint alleged that the proposed transaction would harm competition for business travel management services to US global and multinational businesses.

The Department of Justice also noted that the proposal if agreed would be Amex GBT’s fifth acquisition of another travel management company since 2018.

That case is currently before the US courts.

Amex GBT’s planned takeover of CWT was announced in March 2024.

In November, an interim CMA report found the merger likely to “substantially lessen competition” in the provision of corporate travel services to global multinationals.

But last week the CMA reported “further analysis” had led the inquiry group to reverse its findings, concluding that “CWT is a significantly weaker competitor [and] other suppliers will offer an alternative to the merged business”, meaning “the deal should be allowed to proceed”.

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