Regulators drop opposition, paving the way for a dominant business travel giant but raising competition concerns
Jul 31, 2025
The U.S. Department of Justice has dropped its lawsuit challenging the merger of American Express Global Business Travel and CWT, clearing the path for the creation of a business travel powerhouse twice the size of its nearest rival. While the deal promises greater scale and reach, critics warn it could reinforce an oligopolistic market structure and stifle innovation.
Key takeaways
- Merger approved: The DOJ dropped its lawsuit, allowing Amex GBT and CWT to move forward with their $570 million merger, which is expected to close in the third quarter.
- Market dominance: The combined company will have $45.5 billion in sales, nearly double that of its closest competitor, BCD Travel, at $23 billion.
- Regulatory backdrop: The UK’s Competition and Markets Authority had already approved the deal, citing CWT’s weakened competitive position post-bankruptcy.
- Antitrust concerns: The DOJ initially argued the merger would reduce competition, leading to higher prices, fewer choices, and less innovation for corporate clients.
- Defense by Amex GBT: The company countered that the market has changed, with increased competition from tech-driven agencies like Navan, Kayak for Business, and Spotnana, as well as other traditional players.
- Industry reactions: Amex GBT and CWT leaders expressed optimism about combining operations, while some independent travel management companies criticized the deal as reinforcing an oligopoly.
Get the full story at Skift (subscription required)
