The Competition and Markets Authority (CMA) has confirmed the timeline for its phase 2 investigation of Global Business Travel Group’s proposed takeover of rival CWT.
The CMA confirmed its referral of the deal for an in-depth investigation on August 12 after Global Business Travel (GBT) gave notice it would not provide the undertakings sought by the UK’s competition regulator “to address competition concerns”.
The authority announced at the end of July that it had decided the merger between leading travel management companies (TMCs) Global Business Travel Holdings, parent company of American Express Global Business Travel, and CWT (formerly Carlson Wagonlit Travel) could result “in a substantial lessening of competition”.
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The $570-million acquisition of CWT by Amex GBT was announced in late March.
Both Amex GBT and CWT are based in the US, but Amex GBT is the largest TMC in the UK and in Europe and CWT is the third largest in both markets.
The CMA launched an initial investigation on June 4.
When the CMA announced it was moving to undertake a more serious investigation, the authority’s chief economic adviser Mike Walker said: “We’re concerned this deal between major suppliers of business travel agency services would reduce the pool of providers of these services.”
The CMA is currently considering responses to its phase 1 decision to to refer the takeover to a phase 2 inquiry without certain undertakings from Amex GBT, gathering further information and meeting representatives of the merger parties.
The authority said it would analyse and verify the information it receives through October and publish an interim report by November, inviting comments on any proposed remedies.
The main competition investigation hearings will take place in December along with discussion of proposed remedies with both the companies involved in the merger and third parties.
The CMA proposes a final deadline of “late December” for all responses and submissions, with a final report on the proposed takeover to be published by January 26.
The investigation is being led by CMA non-executive director Martin Coleman.
More: Analysis: Has global corporate travel consolidation hit a buffer?