The Competition and Markets Authority (CMA) has outlined the timeline for its in-depth investigation into the proposed takeover of CWT by Amex GBT.
- The deal, valued at $570 million, has raised concerns over a potential reduction in the competition landscape.
- Amex GBT is the largest travel management company in Europe, while CWT ranks third.
- The CMA’s initial concerns prompted the need for a phase 2 investigation after parties did not meet required undertakings.
- Key hearings and discussions are scheduled for December, with a final report expected in January.
The Competition and Markets Authority (CMA) has officially announced the timeline for a detailed investigation into American Express Global Business Travel’s (Amex GBT) acquisition of its rival CWT. The £570M merger, first revealed in March, faces scrutiny due to potential impacts on competition within the business travel sector.
This phase 2 investigation follows initial findings that the merger might substantially lessen competition, given that both companies are dominant in the UK and European markets. Amex GBT is recognised as Europe’s largest travel management company, while CWT holds the third position.
Initial requests for undertakings from Amex GBT to allay competition concerns remained unmet, prompting this deeper inquiry. The CMA’s chief economic adviser emphasised fears that this merger could narrow the number of available service providers.
During October, the CMA will collect and review responses, conducting the main competition hearings in December. These hearings will include potential remedy discussions with both merger parties and third-party stakeholders.
The process aims to conclude with a final report set for publication by January 26. Non-executive director Martin Coleman leads this inquiry, ensuring a thorough examination of the deal’s implications.
The CMA’s investigation is set to rigorously assess the merger’s competitive implications, with outcomes expected early next year.
