On January 10, 2025, the U.S. Department of Justice (DOJ) filed a lawsuit to block a proposed $570 million merger between American Express Global Business Travel (Amex GBT) and CWT Holdings. The DOJ raised concerns that the merger would significantly reduce competition in the travel management sector, potentially leading to higher prices and fewer options for businesses [44833f87]. The lawsuit, officially titled U.S. v. Global Business Travel Group Inc., was filed in federal court in New York and reflects the Biden administration's ongoing efforts to curb corporate consolidation across various industries [44833f87].
The merger was first announced in March 2025, with plans to finalize it in the first quarter of the year. Amex GBT, which has a minority stake in CWT following a 2014 spin-off, and CWT, which is majority-owned by investment firms, had previously met with DOJ officials in an attempt to defend the merger. However, their efforts to convince the department of the merger's competitive viability were unsuccessful [44833f87].
This lawsuit comes amid a broader context of antitrust scrutiny in the United States, where the DOJ is actively pursuing cases against major corporations to ensure fair competition. The incoming Trump administration's DOJ leadership is expected to continue this focus on antitrust issues, which may impact the future of corporate mergers and acquisitions [44833f87].
The implications of this lawsuit are significant for the corporate travel industry, as it highlights the regulatory challenges faced by companies seeking to consolidate in a highly competitive market. If the merger is ultimately blocked, it could set a precedent for future mergers in the sector, reinforcing the importance of maintaining competition to protect consumers and businesses alike [44833f87].