American Express Global Business Travel Secures UK Antitrust Clearance for CWT Acquisition

American Express Global Business Travel (Amex GBT) has announced that it has provisionally secured UK antitrust clearance for its acquisition of CWT, a global business travel and meetings solutions provider. The deal, valued at approximately $570 million on a cash-free, debt-free basis, is expected to close in the first quarter of 2025, subject to customary closing conditions and regulatory approvals.

The UK's Competition and Markets Authority (CMA) has been reviewing the transaction, focusing on potential harm to competition in the market for multinational companies with annual travel budgets over $25 million. In its interim report, the CMA raised concerns about the acquisition's impact on competition, suggesting that the combined company could lead to higher prices, fewer choices, and less innovation for customers.

Amex GBT and CWT have been working collaboratively with regulatory authorities to address these concerns and demonstrate the benefits of the acquisition. The companies have offered remedies to obtain UK approval, including price caps, opening CWT's travel partner network to competing travel companies, and potentially offloading some CWT customers to competitors.

The provisional clearance from the CMA is a significant step forward in the acquisition process, but the final approval will depend on the CMA's assessment of the remedies offered by the companies. If the CMA finds the remedies insufficient, it may require additional measures or even block the merger.



The acquisition of CWT by Amex GBT is expected to create synergies and provide greater capacity for investment and innovation, creating more choice for customers and more efficient distribution for suppliers while maintaining a highly competitive environment for business travel services. However, the deal has faced scrutiny from antitrust authorities on both sides of the Atlantic, with the US Justice Department filing a civil antitrust lawsuit to block the acquisition over similar concerns about reduced competition in the market.

The final approval of the acquisition will depend on the CMA's assessment of the remedies offered by the companies and the ongoing review by the US Justice Department. If approved, the acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions and regulatory approvals.