United States Justice Department Sues To Block Amex GBT’s $570 Million-CWT Deal

The U.S. Department of Justice wants to block a multi-million dollar merger between American Express Global Business Travel Group and CWT Holdings.

A lawsuit filed by the DOJ in Manhattan federal court on Friday says the $570 million proposed merger deal would wipe out competition between the country’s largest and third largest business travel management providers, according to Reuters. According to filing, the deal could undermine competition for those services in the United States if it’s allowed to proceed.

“American businesses will face the consequences, seeing higher prices, less innovation and fewer choices,” Doha Mekki, head of the DOJ’s Antitrust Division, said per Reuters.

American Express Global Business Travel Group has not yet commented on the lawsuit. CWT has declined to comment, according to Reuters.

The DOJ filing asserts that American Express Global Business Travel Group is pursuing the merger of the two companies as a way to eliminate a “dangerous competitor.”

In 2023, American Express Global Business Travel Group reported $28 billion in travel transactions. The company has acquired many other competitors over the past few years.

And while the company carries the American Express name, it operates as a separate company, with American Express holding a minority stake in the business travel provider.

It is not just the United States DOJ that has expressed concerns about the proposed merger. British antitrust authorities have also expressed reservations.

The British Competition and Markets Authority (CMA) has said that the deal could result in worsened quality of service, higher prices and reduced innovation efforts, according to Reuters.

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