As American Express Global Business Travel's planned acquisition of CWT faces increased scrutiny from regulators, the UK’s Competition and Markets Authority (CMA) on Thursday announced a six-week extension to its ongoing inquiry into the merger.
The CMA had been due to deliver its final report following a ‘phase 2’ investigation into the $570 million deal by 26 January, but this delivery date has now been pushed back to 9 March.
News of the extended review period comes less than a week after the US Justice Department (DOJ) filed its own antitrust lawsuit to block the transaction. Similar to the CMA’s interim report, published on 6 November, the DOJ argues the proposed deal would lead to “higher prices, less innovation and fewer choices” for businesses.
Amex GBT has vehemently disputed the arguments of both authorities and has also criticised the CMA’s investigative processes. To refute the UK regulator’s concerns of reduced competition, particularly in the global and multinational segment, the TMC commissioned its own independent survey of some 1,500 customers, the results of which, it claims, “are more comprehensive and robust than the CMA’s”.
The CMA, in its statement on Thursday, cited Amex GBT’s research as a factor behind the extended review, claiming the survey results were not disclosed to the regulator until 27 November 2024, three weeks after its interim report was published.
“The CMA has allocated resources to understanding and evaluating these submissions and has written to [Amex GBT and CWT] in order to clarify aspects of the survey methodology. This workstream… has had a consequential impact on the timing of the inquiry group’s investigation.”
The regulator also stated that, in light of responses to its interim report, it has “decided to send a paper to GBT and CWT confirming the product market that is the focus of the CMA’s investigation” in case the TMCs wish to present “further representations” ahead of the final report’s publication.