Assignment
CRA’s Finance team was retained to evaluate CWT’s financial condition in connection with the US Department of Justice’s challenge to American Express Global Business Travel’s (GBT) proposed $570 million acquisition of CWT. Following the DOJ’s January 10, 2025 complaint to block the transaction, CWT asserted, among other defenses, that it was in a weakened financial position and met the requirements for the Failing Firm defense under the 2023 Merger Guidelines. Because the transaction faced antitrust scrutiny in both the United States and the United Kingdom, CWT required rigorous financial analysis and expert testimony to support its position.
CRA’s Research and Analysis
CRA conducted detailed financial and economic analyses to assess whether CWT was in a weakened financial condition. The CRA team—led by Professor Emeritus and Senior Consultant to CRA Mark Zmijewski, supported by Erik Himan, Pavel Nikolov, and a team of CRA consultants—evaluated CWT’s financial performance, liquidity, capital structure, and industry context. Professor Zmijewski developed a comprehensive analytical framework consistent with the Failing Firm criteria and applied this approach to the evidence presented in the matter. Professor Zmijewski provided expert testimony explaining CWT’s financial position and offered analyses and opinions to assist the Court in determining whether CWT satisfied the requirements for a Failing Firm defense under the 2023 Merger Guidelines.
Outcome
On July 29, 2025, the DOJ announced that it had dropped its case, clearing the way for the parties to proceed with closing the transaction. This outcome followed the UK Competition and Markets Authority’s March 2025 clearance of the acquisition and came 16 months after the deal was publicly announced in March 2024.
