The US Department of Justice (DOJ) is reportedly preparing a lawsuit to block American Express Global Business Travel’s planned acquisition of rival CWT, according to a Bloomberg report.
The proposed $570 million deal, which was announced last March, is currently being investigated by the UK’s Competition and Markets Authority (CMA) following competition concerns that could lead to “reduced choice and quality, and higher prices” for customers, according to an interim CMA report.
Confidential sources told Bloomberg on Wednesday (8 January) that a DOJ lawsuit could come “as soon as this week” as the Biden Administration enters its final days. An eventual lawsuit, however, would be managed by the incoming Trump Administration, with the president-elect scheduled to take office on 20 January.
Amex GBT and CWT have previously disputed the CMA’s findings and the authority’s decision in late 2024 to launch an in-depth “phase two” investigation into the merger.
The companies argued that the combined entity would “continue to face strong competition from at least four global competitors,” pointing to BCD Travel, FCM, CTM and Navan, who have “the credibility and track record to fight for and win contracts to serve customers of all sizes with the most complex needs, as well as those with simpler requirements.”
In November, the TMCs presented a series of potential “remedies” to the UK regulator in an effort to push the deal through. These included price caps and service commitments for larger clients and opening CWT’s partner network around the world to other TMCs for a “limited time”.
The CMA’s final decision on whether to permit or block the merger in the UK is due by 26 January 2025.
BTN Europe approached both Amex GBT and CWT for their response to the rumours but neither had provided a statement at the time of publication.