AmexGBT takeover of CWT could hike prices and worsen service

The UK's antitrust regulator began investigating whether the deal would lead to a "significant lessening of competition" in the market

American Express Global Business Travel (GBT), the UK's largest travel management company, announced in March a £444 million deal to acquire rival CWT. CWT, the third-largest player in the UK market, provides corporate travel management services to corporate clients worldwide.

Key takeaways

• The Competition and Markets Authority (CMA) raised concerns that the merger could lead to "reduced quality of service, higher prices and reduced innovation for global multinational corporate travel customers”;
• If no satisfactory remedies are proposed, or if the CMA finds the proposed remedies inadequate, a more detailed "Phase Two" investigation will be launched;
• It is now up to GBT and CWT to address our concerns or this case will proceed to a more detailed Phase 2 investigation," said Mike Walker, Chief Economic Advisor at the CMA.

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