The Competition and Markets Authority (CMA) has changed its mind about the proposed acquisition of CWT by Amex GBT, saying it now believes the deal could go ahead.

Publishing a supplementary interim report in its investigation today (February 18), it says further analysis of CWT’s financial situation, based on new evidence, suggests it is a “significantly weaker competitor than in the past and is likely to continue to weaken in the future”.

Martin Coleman, Chair of the independent panel of experts conducting the investigation, said: “Having considered all of the evidence in the round, particularly the further analysis of CWT’s financial position, we have now provisionally concluded that the merger will not result in a substantial lessening of competition in corporate travel management services.

“This is our first investigation under the revised Phase 2 process, with several benefits including the publication of an interim report at an earlier stage and a higher level of business and third-party engagement with the inquiry group. Today’s supplementary report reflects the flexibility this new process provides.

“We will now consider feedback on our supplementary interim report before making a final decision in March.”

In November, the CMA’s interim report provisionally found the proposed merger between GBT and CWT was likely to substantially lessen competition.

But it has now decided there are other suppliers who will offer customers an alternative to the merged business.

The inquiry group will now seek feedback on its supplementary interim report before making a final decision by March 9 2025.

The deadline for comments is Tuesday 25 February 2025.

In January, the United States Department of Justice filed a civil antitrust lawsuit seeking to block the merger. The case is currently before the US courts.

In a statement, Amex GBT said it continues to defend itself against this lawsuit.

Eric J. Bock, GBT’s Chief Legal Officer and Global Head of M&A, said: “The updated provisional conclusions by the CMA is an important milestone toward the consummation of the transaction.

“The CMA’s revised findings reinforce the Company’s belief that the DOJ’s lawsuit is fundamentally flawed, taking a narrow and outdated view of competition, and disregarding the emergence of numerous significant competitors in business travel.”

Paul Abbott, Amex GBT CEO, added: “If consummated, this transaction will accelerate investment and innovation in business travel, creating more choice and value for customers and suppliers, and more opportunities for CWT employees.”

Amex GBT announced its intentions to buy CWT on March 25, 2024, and had initially planned to close the deal by the end of that year.