American Express secures joint business travel venture
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American Express has signed an agreement to create a joint venture for its Global Business Travel (GBT) division.
The company will retain a 50% ownership in the venture with the Qatar Investment Authority and Certares which will see the lead group investing US$900 million into its stake.
In the deal American Express will separate its GBT operations into a dedicated holding structure but it will keep its name, with contract to be put in place to provide a smooth transition.
Bill Glenn, former president of global commercial services at American Express will be president and chief executive of the new venture, with Certares founder Greg O’Hara as chairman.
“The joint venture reflects our continued commitment to the travel business through a new structure with an outstanding group of investors and the resources to grow the business and provide additional value to our corporate customers,” said Kenneth I. Chenault, chairman and CEO of
American Express.
The transaction is expected to close in the second quarter of this year, with funding from the venture to build on GBT’s mobile applications, reporting tools and technology offering.
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