REG - Competition and Mkts - Merger Update - GBT / CWT

Global Business TravelAnnouncement

30/07/2024 14:15

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RNS Number : 4320Y  Competition and Markets Authority  30 July 2024

FOR IMMEDIATE RELEASE - 13h00 TUESDAY 30 JULY 2024

Corporate travel merger could lead to businesses paying higher prices

The CMA has found competition concerns over GBT's planned acquisition of CWT.

Global Business Travel Group (GBT) and CWT Holdings LLC (CWT) are both major
suppliers of business travel agency services to corporate customers around the
world. GBT announced its intention to acquire CWT for $570 million in March
2024.

The CMA is concerned that the merger could lead to worsened quality of
service, higher prices and/or reduced innovation efforts for global
multinational (GMN) business travel customers, as a result of combining the
current largest and third-largest company operating in this market. Following
the merger, there would be a very small pool of providers capable of catering
to the business travel needs of GMN customers.

The parties have until 6 August 2024 to offer undertakings to the CMA to
address the substantial lessening of competition. If no such undertakings are
offered or the CMA decides that any undertaking offered is insufficient to
remedy its concerns to the Phase 1 standard, then the CMA will refer the
merger for an in-depth Phase 2 investigation.

Mike Walker, Chief Economic Adviser at the CMA, said:

"We're concerned this deal between major suppliers of business travel agency
services would reduce the pool of providers of these services to GMN
customers, which could lead to worse services and higher prices for GMN
customers.

"It is now up to GBT and CWT to offer solutions to our concerns, otherwise
this case will proceed to a more in-depth Phase 2 investigation."

More information can be found on the GBT / CWT case page
(https://www.gov.uk/cma-cases/global-business-travel-group-inc-slash-cwt-holdings-llc-merger-inquiry)
.

 

-ENDS-

Notes to editors:

 

1.   All media enquiries should be directed to the CMA press office by email
on press@cma.gov.uk (mailto:press@cma.gov.uk) , or by phone on 020 3738 6460.

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