The Department of Justice dismissed its lawsuit seeking to block American Express Global Business Travel's $540 million acquisition of CWT, clearing the way for the combination of two of the world's biggest travel agencies.
The case, which had been filed in U.S. District Court in the Southern District of New York, was dismissed July 29. The acquisition is now expected to close in the third quarter, Amex GBT said in a statement announcing the dismissal Tuesday.
Amex GBT, No. 3 on Travel Weekly's Power List, announced it planned to acquire No. 6, CWT, in March 2024.
The DOJ filed its lawsuit seeking to block the transaction in January on the grounds that the acquisition would reduce competition among the biggest TMCs, leading to less choice for global/multinational companies. Several travel attorneys at the time disagreed with the DOJ's premise.
The original price tag of the acquisition, $570 million, was reduced to $540 million in March.
"We recognize the regulatory approval process has created uncertainty for CWT customers and employees," Amex GBT CEO Paul Abbott said in the statement. "We're excited to close the transaction and welcome them to Amex GBT. Together, we will offer customers unrivaled choice, value and experience."
CWT CEO Patrick Andersen said the acquisition offered "an exciting future ahead" for its customers and employees.
"Together we can provide a tech-enabled future for business travel, where people and technology combine to deliver an exceptional customer experience," he added.