American Express Global Business Travel (Amex GBT) and Carlson Wagonlit Travel (CWT) are planning to merge two leading corporate travel agencies to create one giant company. Amex GBT executives held an investor conference call after announcing plans to acquire CWT for $570 million. The combined company is expected to have revenues of between $3.28 billion and $3.35 billion. The merger is part of Amex GBT’s growth strategy and offers the opportunity to further increase market share and revenue. CWT would strengthen Amex GBT’s business in a variety of industries such as energy, resources and shipping, media, entertainment and sports, life sciences, and defense and government. For Amex GBT, the acquisition of CWT represents a significant growth opportunity in the small and medium business segment and in meetings and events services. Amex GBT expects the combined entity to achieve savings of approximately $155 million over three years, primarily through efficiencies from consolidation and supplier optimization. Both companies are experimenting with the integration of artificial intelligence, which offers significant opportunities for efficiency and automation. However, regulatory approval could still be an obstacle as the two largest travel agencies in the world would merge.
