Amex GBT-CWT Merger Cleared, Will Create Business Travel Giant Twice the Size of Nearest Rival

Skift

2 days ago

Soon it will be Amex GBT-CWT — and then everyone else. But tech-advanced companies can potentially make inroads as the merger partners get distracted with managing a huge integration.
The U.S. Department of Justice has dropped its lawsuit challenging the merger of American Express Global Business Travel and CWT, clearing the way for the formation of a business travel giant twice the size of the nearest competitor, BCD Travel.
Amex GBT (#1 in the space) and CWT (#4) had a combined $45.5 billion in sales in 2024, according to the Travel Weekly. BCD (#2) had $23 billion.
The DOJ sued to block the merger just days before the end of the Biden administration.
In March, the UK Competition and Markets Authority approved the merger, noting that CWT had become a weakened competitor and other travel management companies could provide competition to the combined business.
The merger is now expected to close in the third quarter.
DOJ Lawsuit Challenged the Deal
In its earlier response to the January 10, 2025 DOJ lawsuit, Amex GBT strongly disputed the allegations, calling the lawsuit a 'blatantly politicized effort.' The company argued that the DOJ's concerns were outdated and overlooked significant changes to the business travel market since the pandemic.
The DOJ had sued to stop the proposed $570 million merger, citing antitrust concerns that the deal would reduce options for large corporate travel customers, leading to higher prices, fewer choices, and diminished innovation.
The DOJ contended that this reduction in competition would stifle innovation and make it harder for businesses to negotiate favorable terms for travel management services.
Amex GBT at the time pointed to the rise of technology-led travel agencies like Navan, Kayak for Business, and Spotnana, as well as increased competition from traditional corporate travel agencies such as BCD, FCM, and Direct Travel. The company also emphasized that CWT had been weakened by bankruptcy and recapitalization in recent years.
Backers and Critics
'We recognize the regulatory approval process has created uncertainty for CWT customers and employees,' said Amex GBT CEO Paul Abbott in a statement. 'We're excited to close the transaction and welcome them to Amex GBT. Together, we will offer customers unrivaled choice, value, and experience.'
CWT CEO Patric Anderson said the company's focus is now on closing the deal and integrating with Amex GBT.
At least one other travel management company wasn't bullish on the deal.
'The move reinforces an oligopolistic market structure at a time when the real value offered by independent TMCs shouldn't be overlooked,' said Andrea Caulfield-Smith, managing director global business travel at Advantage Travel Partnership, in a statement. 'Independent TMCs can offer a consultative approach to deliver a personalised and tailored service offering to their customers, something which remains competitive across the travel ecosystem.'