ForexMinute.com – Living up to its September 2013’s announcement, NYSE listed company American Express (AXP.N) announced yesterday to create a joint venture for its Global Business Travel Division (“GBT”). The investors that have agreed to ink the agreement on a whopping $900 million investment to American Express include Certares Lead Group, and its wholly-owned subsidiary Qatar Investment Authority, as well as other two investors.
As per the agreement, American Express will have a 50% ownership stake in the joint venture, while Qatar Investment Authority will hold the maximum stakes than its three counterparts, which include the aforementioned investment firm Certares, followed by BlackRock Inc. (BLK.N) and Macquarie Capital (MQG.AX). Like before, the business will function under the wing of ‘American Express Global Business Travel’ brand following the closing.
The New York-based company has also hoped for a fruitful execution of its commercial agreement, making sure the mutual customers of GBT and other American Express’s ventures are given uninterrupted services. Currently, the unit’s dedicated customers spend over $19 billion in corporate traveling, which is managed through 139 countries and over 14,000 employees.
The agreement will aim upon strengthening GBT’s technological aspects such as the digital and premium service support, mobile applications, enhanced reporting tools and itinerary management solutions. The joint venture will also focus on enhancing the customer service expertise for which American Express is renowned. “In addition to travel services, GBT provides meetings & events management and consulting services to some of the world’s most recognized companies,” said the American Express’s press release.
The new President and Chief Executive Officer of the joint venture will be the former President of Global Commercial Services at American Express, Bill Glenn, while the Chairman’s seat will be occupied by Certares founder Greg O’Hara.
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