Global Business Travel Group (GBT) has announced its plan to acquire CWT Holdings LLC (CWT) for $570 million, two major suppliers of business travel agency services to corporate customers worldwide.

The CMA is concerned that the merger may lead to worsened service quality, increased prices, and decreased innovation for global multinational business travel customers due to the consolidation of the two largest companies in the market.

If no satisfactory solutions are proposed by GBT and CWT by 6 August 2024, or if the CMA deems the remedies insufficient, the merger will undergo a Phase 2 investigation to address these competition concerns.

Mike Walker, Chief Economic Adviser at the CMA, highlighted the potential negative impact of the deal on the availability of business travel services for global multinational customers, urging the companies to address these concerns promptly to avoid a Phase 2 investigation.