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AmEx sells half stake in business travel unit
American Express confirmed it has spun off its global business travel division into a new joint venture partnership with a leading investment firm.
The business travel division will become a separate dedicated unit, jointly owned by American Express and an investor group led by Certares.
In return for handing over 50% ownership to Certares, AmEx will receive $900 million.
The Certares Group includes the Qatar Investment Authority and Macquarie Capital as partners.
The new joint venture will continue to operate under the American Express Global Business Travel brand.
Bill Glenn, who took over as head of the global business travel unit at the beginning of the year, will become CEO with Certares founder Greg O’Hara as chairman.
Glenn said the deal represents the largest single investment in a travel management company.
"We account for more corporate travel sales than any other TMC, and these initiatives will put us in a better position," he said.
He also said the deal does not include American Express’ consumer travel business.
AmEx hopes to complete the deal by in the second quarter of 2014 once regulatory approvals come through.
The firm first mooted the possibility of a joint venture for its business travel division back in September 2013.
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