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NEW YORK - The United States Department of Justice has dismissed its complaint challenging American Express Global Business Travel’s acquisition of CWT, clearing a significant regulatory hurdle for the $540 million transaction, according to a press release issued by Global Business Travel Group, Inc. (NYSE:GBTG). According to InvestingPro data, GBTG currently maintains strong financial health with a current ratio of 1.6, indicating solid liquidity to support this strategic move.
The deal, which combines two major players in business travel services, is now expected to close in the third quarter of 2025, subject to remaining closing conditions.
"We recognize the regulatory approval process has created uncertainty for CWT customers and employees. We’re excited to close the transaction and welcome them to Amex GBT," said Amex GBT CEO Paul Abbott.
The transaction is valued at $540 million, consisting of approximately 50 million shares to be issued at a fixed price of $7.50 per share, with the remaining consideration funded with cash on hand. CWT shareholders will own approximately 10% of the combined company upon completion.
Amex GBT expects the acquisition to be "highly accretive" with approximately $155 million of identified net synergies, according to the company statement.
CWT CEO Patrick Andersen expressed satisfaction with the DOJ’s decision, noting that "our customers and people have an exciting future ahead of them as we turn our focus to completing the transaction and integrating with Amex GBT."
American Express Global Business Travel operates as a software and services company specializing in travel, expense, and meetings and events management, with business partners in more than 140 countries.
In other recent news, American Express Global Business Travel (AMEX GBT) reported its Q1 2025 financial results, exceeding earnings expectations. The company achieved an earnings per share (EPS) of €0.16, surpassing the forecasted €0.13. However, revenue for the quarter was €621 million, which fell short of the anticipated €633.54 million. Despite the earnings beat, the company’s stock experienced a decline following the announcement. These developments reflect the latest financial performance of AMEX GBT. The market’s reaction highlights the importance investors place on revenue figures alongside earnings. As analysts continue to evaluate the company’s financial health, these results provide critical insights into its current standing.
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