UK Regulator Gives Provisional Green Light to Amex GBT-CWT Merger

The UK's competition regulator, which last year preliminarily found that American Express Global Business Travel's pending $570 million acquisition of rival CWT would likely stifle competition in corporate travel, has reversed course.

The Competition and Markets Authority stated Tuesday that it subsequently considered additional evidence about CWT's financial position and therefore "we have now provisionally concluded that the merger will not result in a substantial lessening of competition in corporate travel management services."

The new finding is not the end of the merger review process in the UK. The CMA is slated to make a final decision by March 9.

CWT's Weakened Financial Position Could Bring Merger OK in the UK

The reversal, according to the regulatory authority, came because it received additional information about the declining state of CWT, which had been for sale for several years.

"Further analysis that suggests CWT would not have performed as strongly absent the merger as the group had initially assessed," the CMA stated. "As a result, and having considered all the evidence in the round, the group has provisionally concluded that CWT is a significantly weaker competitor than in the past and is likely to continue to weaken in the future. There are other suppliers who will offer customers an alternative to the merged business."

In the interim report, much of the specifics about the financial condition of CWT, which declared bankruptcy in 2021, is redacted.

However, the report states that CWT financials suffered during the pandemic, and the company "continued to paint a mixed picture" in 2024 before the acquisition announcement.

"We provisionally consider that the evidence shows that CWT’s financial performance is weak and is likely to further weaken in the future," the CMA stated.

Amex GBT's Reaction

Eric Bock, Global Business Travel's chief legal officer, applauded the UK finding. “The updated provisional conclusions by the CMA is an important milestone toward the consummation of the transaction," Bock said in a statement.

The two companies announced the deal almost a year ago, in March 2024.

Amex GBT CEO Paul Abbott likewise welcomed the provisional finding. “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," Abbott said.

DOJ Lawsuit to Block the Merger

In January, in the waning days of the Biden administration, the U.S. Department of Justice filed a lawsuit to block the merger of the #1 and #2 largest travel management companies in the world, Amex GBT and CWT, respectively, on antitrust grounds.

The judge in the case, which is being considered in the Southern District of New York, recently set a trial date for September 2025.

Amex GBT continues to defend itself in the lawsuit.

Bock said the lawsuit is "fundamentally flawed, taking a narrow and outdated view of competition, and disregarding the emergence of numerous significant competitors in business travel.”