American Express Gains UK Approval for CWT Acquisition
London, Tuesday, 18 February 2025.
American Express Global Business Travel has provisionally gained UK antitrust clearance to acquire CWT, despite pending regulatory challenges in the U.S. This strengthens its global market stance.
UK Competition Authority’s Decision
American Express Global Business Travel (Amex GBT), a leading B2B travel platform [2], received provisional clearance from the UK’s Competition and Markets Authority (CMA) on February 17, 2025, for its proposed acquisition of CWT [1]. The CMA’s final decision is expected by March 9, 2025, marking a crucial milestone in the acquisition process [1].
Regulatory Challenges and Timeline
While the UK approval represents progress, the acquisition faces regulatory hurdles in the United States. The U.S. Department of Justice (DOJ) filed a lawsuit in January 2025 to prevent the deal [1]. The transaction, initially agreed upon on March 25, 2024 [1], aims to enhance Amex GBT’s position in the global travel marketplace, where it currently operates as the world’s leading B2B travel platform [2].
Executive Perspectives and Strategic Vision
Paul Abbott, Amex GBT’s CEO, emphasized that the acquisition would ‘accelerate investment and innovation in business travel’ [1]. The company’s Chief Legal Officer, Eric J. Bock, described the CMA’s provisional conclusions as ‘an important milestone toward the consummation of the transaction’ [1]. The deal comes at a time when Amex GBT is actively expanding its global presence, particularly focusing on strengthening its service offerings [1][2].
Market Impact and Considerations
The acquisition involves various risk factors, including potential impacts on competition, supplier relationships, and financial performance [1]. The travel industry currently faces additional challenges from geopolitical conflicts, including tensions in Ukraine and the Middle East [1]. These factors will need to be carefully navigated as the company works toward completing the acquisition, pending final regulatory approvals [1].