AmEx looks to sell half business travel unit
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American Express has announced plans to create a joint venture to transform its Global Business Travel (GBT) division.
The company is in talks with an investor group led by senior management firm Certares to plug US$700 million-US$1 billion into GBT’s products, services and customer growth internationally.
Under the proposed venture AmEx would share GBT ownership with the investor group including its operations, business relationships and other assets.
If the agreement is given the green light it is expected to close in the second quarter of 2014.
With the new structure its board will include representatives from both sides, with the current GBT team to remain so while the transition takes place.
“We’ve been making strong progress in our efforts to transform our corporate travel business,” said Stephen J. Squeri, group president, global corporate services, American Express.
“The first phase of this transformation, announced earlier this year, has been focused on reducing the cost structure within GBT through our technology and infrastructure advances. The joint venture we plan to form represents the next phase of the transformation, which is aimed at accelerating the growth of this business through additional investments that would be used to develop new products, services and capabilities that we expect will help us meet the evolving needs of our current customers, attract new ones, and continue to build our international business,” he added.
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