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

Global Business TravelAnnouncement

18/02/2025 15:15

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RNS Number : 5655X  Competition and Markets Authority  18 February 2025

FOR IMMEDIATE RELEASE - 14h00 TUESDAY 18 FEBRUARY 2025

 

CMA publishes supplementary interim report in GBT / CWT merger investigation

 

The Competition and Markets Authority (CMA) has published a supplementary
interim report in its investigation of the merger of corporate travel
management companies Global Business Travel Group, Inc (GBT) and CWT Holdings
LLC (CWT). Both companies supply travel agency services to global businesses
with high travel spend and employees who travel internationally.

 

This is the first in-depth merger investigation that the CMA has conducted
under its revised Phase 2 process. Those process changes included issuing a
more provisional 'interim report', earlier in the process, to facilitate
engagement by merging parties in relation to the independent CMA inquiry
group's initial assessment.

 

In November, the CMA's interim report provisionally found the proposed merger
between GBT and CWT was likely to substantially lessen competition. Following
the interim report, the CMA has continued to gather evidence and has carried
out further analysis that suggests CWT would not have performed as strongly
absent the merger as the group had initially assessed. As a result, and having
considered all the evidence in the round, the group has provisionally
concluded that CWT is a significantly weaker competitor than in the past and
is likely to continue to weaken in the future. There are other suppliers who
will offer customers an alternative to the merged business.

 

Based on that further analysis, and in line with its usual procedures, the CMA
inquiry group is today publishing a supplementary interim report ahead of its
final decision. That interim report sets out why the group provisionally
considers that the deal should be allowed to proceed.

 

Martin Coleman, chair of the independent panel of experts conducting this
investigation, said:

 

"In this case, having considered all of the evidence in the round,
particularly the further analysis of CWT's financial position, we have now
provisionally concluded that the merger will not result in a substantial
lessening of competition in corporate travel management services.

 

"This is our first investigation under the revised Phase 2 process, with
several benefits including the publication of an interim report at an earlier
stage and a higher level of business and third-party engagement with the
inquiry group. Today's supplementary report reflects the flexibility this new
process provides.

 

"We will now consider feedback on our supplementary interim report before
making a final decision in March."

 

The inquiry group will now seek feedback on its supplementary interim report
before making a final decision by 9 March 2025. The deadline for comments is
Tuesday 25 February 2025.

 

For more information, visit the Global Business Travel Group, Inc / CWT
Holdings, LLC merger inquiry
(https://www.gov.uk/cma-cases/global-business-travel-group-inc-slash-cwt-holdings-llc-merger-inquiry)
case page.

 

 ENDS 

 

Notes to editors

1.   On 10 January 2025 the United States Department of Justice filed a
civil antitrust lawsuit seeking to block the merger. The case is currently
before the US courts.

2.   New Phase 1 cases opened by the CMA after 25 April 2024 which are
referred for an in-depth Phase 2 investigation are run under the new Phase 2
process
(https://www.gov.uk/government/news/new-phase-2-investigation-process-adopted-by-cma)
.

3.   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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