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.
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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.
? See also:?Making headlines: a timeline of the proposed acquisition, as reported by BTN Europe.?