Two US senators have written to the CEOs of American Express and CWT Holdings in relation to the US Department of Justice (DoJ) decision to drop its lawsuit against their merger.
US senators Richard Blumenthal, Conneticut, and Elizabeth Warren, Massachusetts, are asking for information about the companies’ hiring of lobbyists and political consultants with close ties to the Trump Administration, allegedly to obtain a favourable settlement regarding the $570 million deal.
The call comes after the DoJ abruptly dropped its lawsuit challenging Amex’s proposed acquisition of CWT Holdings, without giving a public explanation.
“The decision to dismiss the case, as well as the timing of that decision, raise several questions about whether undue influence contributed to the DOJ’s decision to drop the case, and whether the dismissal was part of a larger coordinated effort to avoid scrutiny of the influence and power that consultants and lobbyists are exercising in the Department’s decision-making surrounding antitrust cases,” the senators wrote in a letter to Amex GBT CEO Paul Abbot and to CWT President and CEO Patrick Andersen.
In January the DoJ’s Antitrust Division filed a lawsuit challenging the acquisition by Amex GBT of CWT, its second-largest competitor.
It argued that the proposed deal – the fifth acquisition by Amex GBT since 2018 – would harm competition for US global and multinational businesses and warned that American businesses will face the consequences “seeing higher prices, less innovation and fewer choices”.
But in July the lawsuit was dropped this week, allowing the deal to go ahead.
In their letter, the senators said: “The sudden dismissal of the Department’s complaint, a resolution that avoids statutorily required lobbying disclosures that would have accompanied a settlement, raises significant concerns about the role of outside consultants, including Ballard Partners, in influencing DOJ enforcement actions and follows on serious allegations of political interference and retaliation against the Antitrust Division in connection with another recent resolution.
“Additional reporting indicates these events may be part of a wider pattern of lobbyists and consultants with close ties to the White House and the Trump family having outsized and undue influence on antitrust investigations and enforcement actions.”
They questioned whether the reporting raises serious questions about what is being hidden by DoJ’s strategic dismissal of its lawsuit.
The senators noted that by voluntarily dismissing the case rather than settling, the DoJ allowed Amex GBT and CWT to avoid disclosing any other lobbyists and consultants, other than Ballard Partners, retained in connection with the merger challenge.
They pointed to similarities between the DOJ’s handling of the Amex GBT/CWT merger and its action with another deal, Hewlett Packard Enterprises and Juniper, which might “illustrate a potentially alarming pattern of behaviour: Trump-aligned political operators reportedly interfering with the Antitrust Division’s enforcement of our antitrust laws”.
When asked for a reponse, an Amex GBT spokesperson said: “The benefits of our combination with CWT have been recognised by regulators in both the US and UK following separate and lengthy reviews.
“The DOJ dismissed its lawsuit based on the merits of our case, consistent with other regulators around the world. We are working closely with the CWT team to complete the transaction, so we can deliver even better choice, value, and experiences to our customers.”
