American Express’s new joint venture for its Global Business Travel division is expected to be completed by the end of June.
Under the agreement finalised last month, Amex will share ownership of the joint venture with an investor group led by New York-based Certares.
Amex’s chief financial officer Jeff Campbell said: “The agreement entails our partners investing $900 million and the company contributing the assets of our business travel business to the joint venture.
“This new structure should provide greater resources to grow the business as a separate entity while maintaining important linkages with American Express.”
Campbell added the plan remained for this deal to be completed by the end of the second quarter although it could be delayed by regulators.
“As is the case with most sizable transactions, there are regulatory aspects that could delay the transaction closing date,” said Campbell.
The business travel joint venture will continue using the American Express brand and will be led by CEO Bill Glenn, who was formerly Amex’s president of global commercial services.