American Express announced Monday that they would be selling 50% of their Global Business Travel division to an investor group for $900 million. The purchase would go to investors led by Certares, a group that includes the government of Qatar and the money management giant BlackRock. This deal, once completed in the second quarter, will conclude American Express’ plans to separate corporate travel while still keeping it under the American Express Global Business Travel brand.
American Express will continue to maintain a 50% stake, but the venture will be a split off from the corporate travel business. By selling this part of the business, American Express hopes to increase business travel spending. American Express plans to use the proceeds from this sale to “reinvest in its corporate travel business, including in new technology like mobile services.” As the largest credit card issuer based on spending, this shift is expected to provide additional value to American Express’ corporate consumers.
Only the corporate travel will switch leadership. The consumer travel business will not be affected by the sale. The sale is expected to close at the end of this year’s second fiscal quarter.
Source: New York Times
