The Competition & Markets Authority (CMA) in the United Kingdom has opened an inquiry into the acquisition of CWT by American Express Global Business Travel.
Investigations are opened under the Enterprise Act of 2002 when certain circumstances are met including if the turnover in the U.K. of the company being acquired exceeds £70 million.
In its guidance on merger situations the CMA says, “The act’s definition of a ‘relevant merger situation’ covers several different kinds of transaction and arrangement. A company that buys or intends to buy a majority shareholding or a significant minority shareholding in another company is the most obvious example, but other arrangements such as the transfer or pooling of assets or employees, the creation of a joint venture or outsourcing arrangements may, in certain circumstances, also give rise to relevant merger situations.”
Subscribe to our newsletter below
A statement from Amex GBT confirmed that the company had “voluntarily notified the CMA of the transaction for antitrust approval in the U.K.”
“We are working constructively with the CMA as it undertakes this standard merger review process,” the company said.
The U.K. regulator is asking any interested parties to comment by June 18 as the CMA considers whether the transaction could result in less competition in any markets across the country. The deadline for its initial decision is July 30.
Amex GBT announced its acquisition of CWT for $570 million in late March with the transaction expected to close in the second half of the year.
At the time, Amex GBT’s chief executive Paul Abbott said the acquisition was in line with its mergers and acquisitions strategy, adding that the deal would increase total transaction value by 45% and revenue by 34%.
