Amex GBT criticizes DOJ timing in CWT acquisition lawsuit

Amex GBT criticized the DOJ for suing to block its $570 million acquisition of CWT just 10 days before the change in administration

The suggestion was that the Biden administration wouldn't have to get involved because the deal would close after its term, leaving time for the Trump Justice Department to review it.

Key takeaways

• The Department of Justice filed a lawsuit in New York on Friday to block Global Business Travel Group's (Amex GBT) acquisition of CWT, a deal that would combine the world's two largest travel management companies;
• The DOJ argued that the merger would raise prices for large clients, limit their choices and stifle innovation;
• The lawsuit highlighted that this would be Amex GBT's fifth acquisition of a competitor since 2018, and claimed that CWT was seeking a higher price because Amex GBT would benefit from eliminating its top competitor;
• It further noted that large corporations rely on "mega" travel management companies such as Amex GBT, CWT and BCD Travel to provide the comprehensive services required by multinational corporations.

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