American Express to sell half of business travel division
A group led by Certares Investment Bank is planning to invest up to $1 billion in a joint venture with American Express Global Business Travel.
American Express said that it wants to create a greater investment capacity for its business travel division, to enhance its products and services and help attract new customers and grow internationally.
American Express said that it would have a 50% stake in the joint venture, which would continue to operate under the American Express Global Business Travel brand.
American Express said the transaction should close in the second quarter of 2014. A board of directors would include representatives appointed by American Express and the new investor group.
While working on the joint venture, the current management team will remain in place.
Stephen Squeri, group president of Global Corporate Services, said that the joint venture is part of an ongoing effort to restructure American Express’ corporate travel business. American Express announced a cost-reduction plan for its business travel division earlier this year.