DOJ Seeks to Block Amex GBT’s $570M Acquisition of CWT

U.S. Department of Justice (DOJ) has filed a civil antitrust lawsuit to block American Express Global Business Travel’s (Amex GBT) $570 million acquisition of rival CWT. The DOJ argues the merger would reduce competition in the business travel management market, potentially driving up prices and stifling innovation.

“This deal would consolidate an already concentrated market, leaving businesses with fewer options and higher costs,” said Doha Mekki, acting assistant attorney general for the DOJ’s Antitrust Division. The lawsuit claims Amex GBT viewed the acquisition as a way to eliminate a key competitor and reduce pricing pressure.

Amex GBT, which has acquired four travel management companies since 2018, including HRG and Egencia, expressed disappointment with the DOJ’s move. The company asserts the DOJ’s analysis is outdated and doesn’t reflect the post-pandemic transformation of the travel industry. “The focus on a small subset of large U.S. customers overlooks the broader, competitive landscape,” Amex GBT stated.

International regulators have also scrutinized the deal. The UK’s Competition and Markets Authority (CMA) launched an investigation in June, raising concerns about reduced competition. In November, the CMA reported provisional findings that support the DOJ’s concerns.

Amex GBT remains optimistic about the acquisition, highlighting the potential benefits for customers, employees, and suppliers. CEO Paul Abbott previously described the deal as a strategic move to expand services to 4,000 new customers. However, with legal and regulatory challenges mounting, the future of the acquisition remains uncertain.

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DOJ Seeks to Block Amex GBT’s $570M Acquisition of CWT

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