American Express Global Business Travel Notes U.K. Competition and Markets Authority’s Interim Report Regarding CWT Acquisition
06 Noviembre 2024 - 8:27AM
Business Wire
American Express Global Business Travel, which is operated by
Global Business Travel Group, Inc. (NYSE: GBTG) (“Amex GBT” or the
“Company”), a leading software and services company for travel,
expense and meetings & events, has confirmed today that the
U.K. Competition and Markets Authority (the “CMA”) has published
its interim report regarding Amex GBT’s proposed acquisition of
CWT, a global business travel and meeting solutions provider. Amex
GBT fundamentally disagrees with the CMA’s interim assessment that
the transaction may result in a substantial lessening of
competition in the UK and it will continue to work collaboratively
with the CMA to demonstrate that the transaction should be approved
by the CMA.
The Company believes that the CMA’s interim report does not
reflect the evidence presented on the highly competitive and
dynamic nature of the business travel sector. Instead, the CMA has
erroneously focused on a narrow segment that makes up a small
fraction of business travel spend. The CMA has ignored multiple
sources of evidence that show clearly that Amex GBT consistently
competes for all customers, including the largest global customers,
with numerous other travel management companies that operate
globally.
Amex GBT will respond to the interim report to correct several
errors and misconceptions about how the business travel sector
operates and to demonstrate that the CWT acquisition will not harm
competition in the UK or elsewhere. The acquisition of CWT will
create synergies and provide greater capacity for investment and
innovation. It will also create more choice for customers and more
efficient distribution for suppliers while maintaining a highly
competitive environment for business travel services.
Amex GBT will in parallel continue to work collaboratively with
other regulators, including the Antitrust Division of the U.S.
Department of Justice, in their review of the transaction. The
Company continues to expect the transaction to close in the first
quarter of 2025.
Eric J. Bock, Amex GBT’s Chief Legal Officer and Global Head of
M&A, said: “We are disappointed by the CMA’s interim report.
The CMA has not appreciated the evidence that reflects the breadth
of the business travel industry and its dynamic and competitive
nature. In recent years, numerous travel management companies have
expanded their offerings while other companies have entered the
industry and are rapidly growing their businesses. We are reviewing
the interim report closely and will be responding to the CMA’s
concerns. We firmly believe that the proposed transaction would
result in many customer and supplier benefits and that the business
travel industry would remain highly competitive. We will be
engaging further with the CMA to demonstrate why its concerns are
not justified.”
About Amex GBT
Amex GBT is a leading software and services company for travel,
expense, and meetings & events. We have built the most valuable
marketplace in travel with the most comprehensive and competitive
content. A choice of solutions brought to you through a strong
combination of technology and people, delivering the best
experiences, proven at scale. With travel professionals and
business partners in more than 140 countries, our solutions deliver
savings, flexibility, and service from a brand you can trust – Amex
GBT.
Visit amexglobalbusinesstravel.com for more information about
Amex GBT. Follow @amexgbt on X, LinkedIn and Instagram.
Forward-Looking Statements
This communication contains statements that are forward-looking
and as such are not historical facts. This includes, without
limitation, statements regarding our current expectations or
forecasts of future events. These statements constitute
projections, forecasts and forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
The words "anticipate," "believe," "continue," "could," "estimate,"
"expect," "intend," "may," "might," "plan," "possible,"
"potential," "predict," "project," "should," "will," "would" and
similar expressions may identify forward-looking statements, but
the absence of these words does not mean that a statement is not
forward-looking.
The forward-looking statements contained in this communication
are based on our current expectations and beliefs concerning future
developments and their potential effects on us. There can be no
assurance that future developments affecting us, including as a
result of the transaction, will be those that we have anticipated.
These forward-looking statements involve a number of risks,
uncertainties (some of which are beyond our control) or other
assumptions that may cause actual results or performance to be
materially different from those expressed or implied by these
forward-looking statements. These risks and uncertainties include,
but are not limited to, the following risks, uncertainties and
other factors: (1) changes to projected financial information or
our ability to achieve our anticipated growth rate and execute on
industry opportunities; (2) our ability to maintain our existing
relationships with customers and suppliers and to compete with
existing and new competitors; (3) various conflicts of interest
that could arise among us, affiliates and investors; (4) our
success in retaining or recruiting, or changes required in, our
officers, key employees or directors; (5) factors relating to our
business, operations and financial performance, including market
conditions and global and economic factors beyond our control; (6)
the impact of geopolitical conflicts, including the war in Ukraine
and the conflicts in the Middle East, as well as related changes in
base interest rates, inflation and significant market volatility on
our business, the travel industry, travel trends and the global
economy generally; (7) the sufficiency of our cash, cash
equivalents and investments to meet our liquidity needs; (8) the
effect of a prolonged or substantial decrease in global travel on
the global travel industry; (9) political, social and macroeconomic
conditions (including the widespread adoption of teleconference and
virtual meeting technologies which could reduce the number of
in-person business meetings and demand for travel and our
services); (10) the effect of legal, tax and regulatory changes;
(11) the decisions of market data providers, indices and individual
investors; (12) the outcome of any legal proceedings that may be
instituted against Amex GBT or CWT in connection with the
transaction; (13) the inability to complete the transaction; (14)
delays in obtaining, adverse conditions contained in, or the
inability to obtain necessary regulatory approvals or complete
regulatory reviews required to complete the transaction; (15) the
risk that the transaction disrupts current plans and operations as
a result of the announcement and consummation of the transaction;
(16) the inability to recognize the anticipated benefits of the
transaction, which may be affected by, among other things,
competition, the ability of the combined company to grow and manage
growth profitably, maintain relationships with customers and
suppliers and retain key employees; (17) costs related to the
transaction; (18) risks related to the business of CWT or
unexpected liabilities that arise in connection with the
transaction or the integration with CWT; (19) the risk that the
assumptions, estimates and estimated adjustments described in this
communication may prove to be inaccurate; and (20) other risks and
uncertainties described in the Company's Form 10-K, filed with the
SEC on March 13, 2024, and in the Company's other SEC filings.
Should one or more of these risks or uncertainties materialize, or
should any of our assumptions prove incorrect, actual results may
vary in material respects from those projected in these
forward-looking statements. We undertake no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
under applicable securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20241106563071/en/
Investors: Jennifer Thorington Vice President Investor
Relations investor@amexgbt.com Media: Martin Ferguson Vice
President Global Communications and Public Affairs
martin.ferguson@amexgbt.com
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