UK Competition and Markets Authority Approves Amex GBT’s Acquisition of CWT

Rhea-AI Summary

American Express Global Business Travel (NYSE: GBTG) has received approval from the UK Competition and Markets Authority (CMA) for its planned acquisition of CWT, a global business travel and meetings solutions provider. The approval marks a significant milestone in the merger process.

Amex GBT CEO Paul Abbott expressed satisfaction with the CMA decision, highlighting the potential benefits of the merger, including increased value and choice for customers and suppliers, along with new opportunities for CWT employees.

However, the company faces ongoing challenges as the U.S. Department of Justice (DOJ) has initiated a lawsuit against the acquisition. Amex GBT's Chief Legal Officer Eric J. Bock defended the merger, stating that the DOJ's position is fundamentally flawed and takes a narrow view of competition while ignoring the presence of numerous significant competitors in the business travel sector.

Positive

• UK regulatory approval obtained for CWT acquisition
• Expected increase in value and choices for customers
• Potential business expansion in travel services sector

Negative

• DOJ lawsuit challenging the acquisition
• Legal uncertainty affecting deal completion
• Potential delays due to regulatory challenges

NEW YORK--(BUSINESS WIRE)-- American Express Global Business Travel (“Amex GBT”), which is operated by Global Business Travel Group, Inc. (NYSE: GBTG) (“Amex GBT” or the “Company”), a leading software and services company for travel, expense and meetings and events, received approval today from the United Kingdom's Competition and Markets Authority (CMA) to complete its acquisition of CWT, a global business travel and meetings solutions provider.

“We are pleased with the CMA decision,” said Amex GBT CEO Paul Abbott. “By combining with CWT, we can provide even more value and choice to customers and suppliers and more opportunities for CWT employees.”

Eric J. Bock, Amex GBT’s Chief Legal Officer and Global Head of M&A stated: “The CMA decision also further reinforces our belief that the lawsuit initiated by the U.S. Department of Justice (DOJ) is fundamentally flawed, taking a narrow and outdated view of competition, and disregarding the emergence of numerous significant competitors in business travel. We stand by the benefits of combining with CWT and are confident in the merits of our legal position. We are prepared to prove this in court if required.”

About Amex GBT
Amex GBT is a leading software and services company for travel, expense, and meetings & events. We have built the most valuable marketplace in travel with the most comprehensive and competitive content. A choice of solutions brought to you through a strong combination of technology and people, delivering the best experiences, proven at scale. With travel professionals and business partners in more than 140 countries, our solutions deliver savings, flexibility, and service from a brand you can trust – Amex GBT.

Visit amexglobalbusinesstravel.com for more information about Amex GBT. Follow @amexgbt on Twitter, LinkedIn and Instagram.

Forward-Looking Statements
This communication contains statements that are forward-looking and as such are not historical facts. This includes, without limitation, statements regarding our current expectations or forecasts of future events. These statements constitute projections, forecasts and forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this communication are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us, including as a result of the transaction, will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following risks, uncertainties and other factors: (1) changes to projected financial information or our ability to achieve our anticipated growth rate and execute on industry opportunities; (2) our ability to maintain our existing relationships with customers and suppliers and to compete with existing and new competitors; (3) various conflicts of interest that could arise among us, affiliates and investors; (4) our success in retaining or recruiting, or changes required in, our officers, key employees or directors; (5) factors relating to our business, operations and financial performance, including market conditions and global and economic factors beyond our control; (6) the impact of geopolitical conflicts, including the war in Ukraine and the conflicts in the Middle East, as well as related changes in base interest rates, inflation and significant market volatility on our business, the travel industry, travel trends and the global economy generally; (7) the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; (8) the effect of a prolonged or substantial decrease in global travel on the global travel industry; (9) political, social and macroeconomic conditions (including the widespread adoption of teleconference and virtual meeting technologies which could reduce the number of in-person business meetings and demand for travel and our services); (10) the effect of legal, tax and regulatory changes; (11) the decisions of market data providers, indices and individual investors; (12) the outcome of any legal proceedings that may be instituted against Amex GBT or CWT in connection with the transaction; (13) the inability to complete the transaction; (14) delays in obtaining, adverse conditions contained in, or the inability to obtain necessary regulatory approvals or complete regulatory reviews required to complete the transaction; (15) the risk that the transaction disrupts current plans and operations as a result of the announcement and consummation of the transaction; (16) the inability to recognize the anticipated benefits of the transaction, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain key employees; (17) costs related to the transaction; (18) risks related to the business of CWT or unexpected liabilities that arise in connection with the transaction or the integration with CWT; (19) the risk that the assumptions, estimates and estimated adjustments described in this communication may prove to be inaccurate; and (20) other risks and uncertainties described in the Company's Form 10-K, filed with the SEC on March 13, 2024, and in the Company's other SEC filings. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250306638001/en/

Media:

Megan Kat

Head of Global Communications and Public Affairs

megan.kat@amexgbt.com

Investors:

George Anderson-Brown

Vice President of Finance

investor@amexgbt.com

Source: Global Business Travel Group, Inc.

FAQ

What is the status of Amex GBT's acquisition of CWT?

The acquisition has received approval from UK's Competition and Markets Authority (CMA) but faces a legal challenge from the U.S. Department of Justice.

Why is the U.S. Department of Justice opposing GBTG's acquisition of CWT?

The DOJ claims the merger raises competition concerns, taking what Amex GBT describes as a narrow and outdated view of competition in the business travel sector.

What benefits does GBTG expect from the CWT acquisition?

The merger is expected to provide increased value and choice to customers and suppliers, while creating new opportunities for CWT employees.

How has the UK Competition Authority's decision affected GBTG's position against the DOJ lawsuit?

The UK approval strengthens GBTG's position, reinforcing their belief that the DOJ's lawsuit is flawed and disregards the presence of numerous competitors in business travel.