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US sues to block corporate travel company merger
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US sues to block corporate travel company merger
Jan 10, 2025 11:17 AM

Jan 10 (Reuters) - The U.S. has sued to block a proposed

merger between American Express Global Business Travel Group

and CWT Holdings, saying the $570 million deal would

eliminate competition between the largest and third largest

providers of business travel management services.

The deal threatens to undermine competition for those

services in the U.S., the Department of Justice said in the

lawsuit filed in Manhattan federal court on Friday.

"American businesses will face the consequences, seeing

higher prices, less innovation and fewer choices," Doha Mekki,

head of the DOJ's Antitrust Division, said.

A spokesperson for GBTG did not immediately respond to a

request for comment. A spokesperson for CWT declined to comment.

GBTG executives viewed the deal as an opportunity to absorb

what they viewed as a "dangerous competitor," prosecutors said

in the complaint.

GBTG handled $28 billion of travel transactions in 2023, and

has acquired several other travel companies in recent years,

according to prosecutors.

American Express has a minority stake in GBTG, which

operates as a separate company.

The deal announced in March had elicited concerns from

British antitrust authorities.

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