THIS IS A BREAKING NEWS STORY
The UK’s Competition and Markets Authority has today cleared American Express Global Business Travel’s $570 million acquisition of CWT.
A statement issued by the CMA said: “The group has concluded that CWT is a significantly weaker competitor
than in the past and is likely to continue to weaken in the future and
that there are other suppliers who will offer customers an alternative
to the merged business.”
It continued: “The group is therefore satisfied that the merger is not expected to
result in a substantial lessening of competition in the global market
for the supply of business travel agency services and has cleared the
deal.”
Martin Coleman, chair of the independent panel of experts conducting this investigation, said: “Having reviewed all the evidence thoroughly over
the course of our investigation we have concluded, given the weaker
position CWT plays in the corporate travel market and the alternatives
available, that this deal should be allowed to proceed.”
The planned deal was first revealed in March last year, with the CMA announcing an investigation into the acquisition in June. In the summer, it identified competition concerns and said the merger could lead to customers paying higher prices, before escalating its investigation.
Amex GBT and CWT challenged the CMA’s findings throughout its investigation, proposed remedies to allay its concerns, and criticised its processes and the “backward-looking” nature of its approach.
In January, the US Department of Justice filed a lawsuit to block the merger of the two TMCs, with a trial confirmed for September. In February, the UK’s CMA issued an updated interim report in which reversed its initial proposal to block the deal, pointing to CWT’s weakening position and an assessment of extensive TMC bidding data and business wins.
• See also: Making headlines – the Amex GBT-CWT mega-marger
The timeline of American Express Global Business Travel’s proposed acquisition of CWT, as reported by BTN Europe