U.S. Takes Legal Action to Halt Major Corporate Travel Company Merger

The U.S. government has filed a lawsuit to prevent a suggested merger between American Express Global Business Travel Group and CWT Holdings, asserting that the $570 million agreement would eliminate competition between the leading and the third largest suppliers of business travel management services.

The agreement poses a risk to competition within those services in the U.S., the Department of Justice stated in the lawsuit lodged in Manhattan federal court on Friday.

“American companies will bear the repercussions, facing increased costs, reduced innovation, and fewer options,” stated Doha Mekki, head of the DOJ’s Antitrust Division.

A representative for GBTG indicated that the lawsuit is misguided, and the company is assessing future actions.

“We strongly believe that the proposed merger would provide substantial advantages to all business travel clients, suppliers, and workforce,” GBTG expressed in a statement.

A representative for CWT chose not to comment.

GBTG executives regarded the merger as a chance to eliminate what they perceived as a “formidable rival,” according to the prosecutors in the complaint.

GBTG managed $28 billion in travel transactions during 2023 and has acquired several other travel firms in the past years, prosecutors noted.

American Express possesses a minority interest in GBTG, which operates as an independent entity.

The merger, announced in March, had sparked concerns from British competition authorities.