Amex GBT and CWT dispute watchdog’s merger concerns

The business travel giants push back against UK regulator's competition concerns over a proposed US$570 million merger

In a joint response submitted on August 23, but released last week as part of the ongoing investigation, the TMCs rebut several of the CMA's Phase 1 findings, including arguing that the authority's concerns about a substantial lessening of competition (SLC) are unfounded.

Key takeaways

• The TMCs also claim that the CMA overstated the combined market share of the TMCs, overstated the barriers to entry for new entrants, and "uncritically accepted the arguments of certain suppliers that GBT could slow down the development of NDCs, which have no basis in fact";
• The 55-page written response, with numerous redacted sections, also argued that the TMCs are not currently each other's closest competitor - pointing instead to BCD Travel - and endorsed the ability of several rivals to compete for global multinational (GMN) customers;
• The combined entity would "continue to face strong competition from at least four global competitors," the statement said, pointing to BCD Travel, FCM, CTM and Navan, which "have the credibility and track record to compete for and win contracts to serve customers of all sizes with the most complex needs, as well as those with simpler requirements."

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