By Michael Susin
The U.K. competition regulator said American Express Global Business Travel's planned acquisition of CWT Holdings could substantially lessen competition.
The Competition and Markets Authority said Wednesday that the merger of the travel-management companies could lead to reduced choice and higher prices for customers, following an investigation that started on July 30.
"The merged business would be, by far, the largest supplier in the market, with the second-largest player around half the size of the merged business," it said.
The acquisition was announced in March and valued CWT, which is majority owned by Redwood Capital Management, at $570 million in cash and stock.
The watchdog invited any related parties to respond to these competition concerns by no later than Nov. 27.
Responding, American Express Global Business Travel--which is operated by Global Business Travel Group--said it disagreed with the CMA's assessment and would continue to work with the regulator to show why the deal should be approved.
"The acquisition of CWT will create synergies and provide greater capacity for investment and innovation. It will also create more choice for customers and more efficient distribution for suppliers while maintaining a highly competitive environment for business travel services," Amex GBT said.
CWT wasn't immediately available for comment.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
November 06, 2024 10:09 ET (15:09 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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