Bloomberg reported Wednesday evening that the U.S. Department of Justice in the final days of the Biden Administration was preparing to challenge the deal between two global travel management giants, American Express Global Business Travel and CWT. The U.S. challenge to the estimated $570 million tie-up announced in March and under the scrutiny of UK regulators since June could drop as early as this week. If it proceeds, such a suit would be among the last moves of the current administration to make good on its policy of antitrust enforcement and competition policy, which has been a central piece of its economic agenda.
According to Bloomberg, executives at Amex GBT and CWT met with the DOJ this week to defend the transaction. The companies have already fought for the deal to the UK Competition and Markets Authority, naming BCD Travel and Navan as major competitors. Still, the antitrust challenges have caused the dealmakers, which originally expected to close transaction in the second half of 2024, to push back its projected completion date to the first quarter of 2025. TMC executives also conceded certain antitrust remedies to push the deal through UK regulators.
The CMA’s final decision on whether to permit or block the merger in the UK is due by 26 January 2025. The travel companies maintain that the deal is still scheduled to close in the first quarter.
Should the U.S. challenge move forward, it would be managed by a DOJ under the incoming Trump Administration, which many believe will be comparatively friendlier to business.
Business Travel News reached out to Amex GBT and CWT prior to publication. Both declined to comment.