Amex GBT slashes CWT purchase price by $30m—Here’s why!

American Express Global Business Travel (Amex GBT), operated by Global Business Travel Group, Inc. (NYSE: GBTG), has revised the terms of its proposed acquisition of CWT, a major player in corporate travel management. The amended agreement, announced on March 21, 2025, reduces the transaction value to $540 million, down from the initially agreed $570 million. The changes come as Amex GBT navigates both regulatory scrutiny and financial strategy adjustments in a deal that could reshape the business travel landscape.

The updated terms include a higher fixed stock price of $7.50 per share, compared to the originally agreed $6.00 per share, reflecting confidence in Amex GBT’s equity. However, the number of shares issued in the transaction will be reduced to 50 million, down from 72 million, meaning Amex GBT will rely more on cash to finance the acquisition while also retiring CWT’s debt.

This restructuring of the merger deal signals Amex GBT’s commitment to balancing growth ambitions with shareholder interests. By optimizing its financial outlay, the company aims to maintain stability while enhancing its market position in the increasingly competitive corporate travel industry.

Why Has Amex GBT Extended the CWT Acquisition Timeline?

A major factor influencing the revision is an ongoing antitrust lawsuit filed in January 2025 by the U.S. Department of Justice (DOJ), which seeks to block the acquisition over concerns regarding reduced competition in the corporate travel sector. In response, Amex GBT and CWT have extended their merger deadline to December 31, 2025, allowing additional time to navigate legal challenges.

Amex GBT has stated that it remains confident in the merits of its position, emphasizing that the corporate travel industry remains highly competitive, with several major players operating globally. The company has expressed its readiness to defend the merger in court if necessary.

Despite the DOJ’s opposition, Amex GBT has successfully secured regulatory approval in other key markets. Earlier this month, the United Kingdom’s Competition and Markets Authority (CMA) cleared the acquisition, marking an important step toward expanding Amex GBT’s presence in international corporate travel services.

How Will This Acquisition Impact the Corporate Travel Industry?

The merger between Amex GBT and CWT is set to significantly alter the competitive landscape of the corporate travel industry, consolidating two of the largest players in a market where technology, cost efficiency, and customer service drive success. As corporations increasingly look for integrated, AI-powered travel management solutions, the combined capabilities of Amex GBT and CWT could strengthen their position against emerging tech-driven competitors.

For business travelers, the acquisition could lead to expanded service offerings, improved travel data analytics, and enhanced loyalty benefits. However, concerns persist regarding potential price increases and reduced choice for corporate clients, which remains a central argument in the DOJ’s antitrust challenge.

Industry analysts suggest that this deal is part of a broader trend of consolidation in the corporate travel sector, driven by the need to scale operations, optimize technology, and improve service offerings in a post-pandemic environment. Companies that can adapt to the hybrid work model and evolving travel preferences stand to gain the most, and Amex GBT appears to be positioning itself as a leader in this transformation.

What Does the CWT Acquisition Mean for Amex GBT Investors?

Against the backdrop of its CWT acquisition efforts, Global Business Travel Group Inc. (GBTG) has experienced fluctuating stock performance. As of March 22, 2025, GBTG stock closed at $7.61 per share, reflecting a 1.68% decline from its previous close. Over the past year, shares have ranged between $5.30 and $9.60, indicating significant volatility amid the company’s ongoing expansion efforts.

Despite short-term fluctuations, analysts remain cautiously optimistic about GBTG’s long-term outlook. The stock holds a “Moderate Buy” rating from financial analysts, with four of five analysts recommending a buy and one advising a hold. The average price target is $10.43, implying a potential upside of 37% from current levels, with forecasts ranging between $9.00 and $12.50.

GBTG’s financial performance underscores both growth potential and ongoing challenges. The company reported $2.42 billion in revenue for 2024, a 5.81% increase from the previous year. However, it also recorded a net loss of $138 million, up 119% from 2023, leading to negative earnings per share (EPS) of $0.30. This persistent profitability challenge remains a key risk for investors.

Can Amex GBT Deliver Long-Term Value in Business Travel?

Despite regulatory hurdles, Amex GBT remains focused on long-term value creation. The company’s $300 million share buyback program demonstrates confidence in its future earnings potential and commitment to shareholder returns.

If the merger is successfully completed, Amex GBT could leverage CWT’s assets and technology to drive efficiencies, reduce overhead costs, and enhance service offerings. However, its ability to generate consistent profits post-acquisition will be crucial in determining whether the deal delivers on investor expectations.

For now, market participants are watching the DOJ lawsuit closely, as its outcome could set a precedent for future mergers in the business travel industry. With the CMA’s approval in the UK already secured, Amex GBT is moving forward strategically, but much will depend on how effectively it navigates regulatory pushback in the U.S.

The corporate travel sector is evolving rapidly, shaped by technological innovation, shifting travel policies, and global economic factors. Whether Amex GBT’s acquisition of CWT becomes a defining moment for the industry or a regulatory roadblock remains to be seen, but the stakes for investors, business travelers, and the market at large could not be higher.