The UK competition regulator has given a provisional approval for American Express Global Business Travel’s planned merger with CWT Holdings.
It marks an about-turn for the Competition and Markets Authority, which just a few months ago had said the deal would ‘lessen competition.’
The CMA’s stance now is that the merger should be permitted to proceed.
“Having considered all of the evidence, 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,” said Martin Coleman, chair of the independent experts assessing the merger.
The CMA opened public comments until February 25.
It is expected to make a final decision on March 9.
It represents ‘an important milestone toward the consummation of the transaction,’ said Amex GBT Chief Legal Officer, Eric J. Bock.
It marks a contrast to the situation in the US.
The Department of Justice has sued to block the merger, citing likely ‘higher prices, less innovation and fewer choices.’
However, with a new Administration having taken over in the White House, the civil antitrust lawsuit could be scrapped.
