US sues to dam company journey firm merger

(Reuters) -The U.S. has sued to dam a proposed merger between American Categorical (NYSE:AXP) International Enterprise Journey Group and CWT Holdings, saying the $570 million deal would get rid of competitors between the biggest and third-largest suppliers of enterprise journey administration companies.

The deal threatens to undermine competitors for these companies within the U.S., the Division of Justice mentioned within the lawsuit filed in Manhattan federal courtroom on Friday.

“American companies will face the implications, seeing greater costs, much less innovation and fewer selections,” Doha Mekki, head of the DOJ’s Antitrust Division, mentioned.

A spokesperson for GBTG mentioned the case is flawed and the corporate is evaluating subsequent steps.

“We firmly imagine that the proposed transaction would convey vital advantages to all enterprise journey prospects, suppliers, and staff,” GBTG mentioned in a press release. 

A spokesperson for CWT declined to remark.

GBTG executives seen the deal as a chance to soak up what they seen as a “harmful competitor,” prosecutors mentioned within the criticism.

GBTG dealt with $28 billion of journey transactions in 2023, and has acquired a number of different journey firms lately, in response to prosecutors.

American Categorical has a minority stake in GBTG, which operates as a separate firm.

The deal introduced in March had elicited considerations from British antitrust authorities.