US sues to block corporate travel company merger (updated)

Global Business Travel

10/01/2025 21:19

(Adds comment from company in paragraphs 4-5)
       Jan 10 (Reuters) - The U.S. has sued to block a proposed
merger between American Express Global Business Travel Group
 GBTG.N  and CWT Holdings, saying the $570 million deal would
eliminate competition between the largest and third-largest
providers of business travel management services.
    The deal threatens to undermine competition for those
services in the U.S., the Department of Justice said in the
lawsuit filed in Manhattan federal court on Friday.
    "American businesses will face the consequences, seeing
higher prices, less innovation and fewer choices," Doha Mekki,
head of the DOJ's Antitrust Division, said.
        A spokesperson for GBTG said the case is flawed and the
company is evaluating next steps. 
    "We firmly believe that the proposed transaction would bring
significant benefits to all business travel customers,
suppliers, and employees," GBTG said in a statement. 
    A spokesperson for CWT declined to comment.
    GBTG executives viewed the deal as an opportunity to absorb
what they viewed as a "dangerous competitor," prosecutors said
in the complaint.
    GBTG handled $28 billion of travel transactions in 2023, and
has acquired several other travel companies in recent years,
according to prosecutors. 
    American Express has a minority stake in GBTG, which
operates as a separate company.
    The deal announced in March had elicited concerns from
British antitrust authorities.

 (Reporting by Jody Godoy in California; Editing by Aurora Ellis
and Alistair Bell)
 ((Jody.Godoy@thomsonreuters.com;))