Le acquisition of CWT by American Express GBT is certainly not universally acclaimed... Scrutinised with the utmost suspicion by the British authorities for several months, it is now the subject of a complaint in the United States. The US Department of Justice (DOJ) filed it on 10 Januaryarguing that "the proposed 570 million - the fifth acquisition of another travel management company by Amex GBT since 2018 - would harm competition for corporate travel management services for U.S. global and multinational companies."
If Amex GBT is allowed to acquire CWT, this intense competition would be lost, which could lead to higher prices, less innovation and less choice.
The Department of Justice points to three negative consequences that would result from this acquisition: higher prices, less innovation and fewer choices. And the relative dynamism of CWT, which has not opted for the stand by since the beginning of the negotiations, is finally turning against the project... The Ministry thus points out: "Today, Amex GBT and CWT compete fiercely to provide travel management services to large corporations and those with complex travel needs. CWT has recently begun to implement new and innovative strategies to improve service and reduce prices in order to win market share from Amex GBT. As a result, Amex GBT recently lost several major tenders for large companies to CWT.. If Amex GBT is allowed to acquire CWT, this intense competition would be lost, risking higher prices, less innovation and less choice - costs that will be borne by the many businesses and employees for whom these services are essential to their productivity and operations.
In addition to the size of the two players involved and their market shares, it is the accumulation of takeovers that is of concern to the DOJ. Doha Mekki, Acting Assistant Attorney General for the DOJ's Antitrust Division, said: " This acquisition is the latest in a series of acquisitions by Amex GBT that will further consolidate an already consolidated market with only a handful of competitive options capable of serving those customers most in need of corporate travel management services. US companies will suffer the consequences, with higher prices, less innovation and less choice. ".
