The merger between American Express Global Business Travel and CWT "has the potential to substantially lessen competition," the U.K.'s Competition and Markets Authority said in a report of its provisional findings of its investigation of the merger—an assessment with which Amex GBT said it "fundamentally disagrees."
In its interim report on the $570 million acquisition of CWT by Amex GBT, the CMA said an independent inquiry group found the deal would lead to less choice and higher prices among large customers, which it defined as having at least $25 million in total transaction volume annually. "We have provisionally found that only a small number of business travel agencies are considered capable of meeting the needs of the largest companies, and this deal could reduce competition and increase costs," the inquiry group's chair, Martin Coleman, said in a statement.
In its own statement, Amex GBT countered that the report "erroneously focused on a narrow segment that makes up a small fraction of business travel spend" and did not take into consideration evolving competition in the market.
"The CMA has not appreciated the evidence that reflects the breadth of the business travel industry and its dynamic and competitive nature," Amex GBT chief legal officer and global head of M&A Eric Bock said in a statement. "In recent years, numerous travel management companies have expanded their offerings while other companies have entered the industry and are rapidly growing their businesses."
The CMA is allowing commentary on the provisional findings through Nov. 27. Bock said Amex GBT "is reviewing the interim report closely and will be responding to the CMA's concerns."
Amex GBT also said it continues to work with other regulators for approval, including the U.S. Department of Justice's Antitrust Division, and that it still expects the acquisition to close in the first quarter of 2025.