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Another Big Deal Sunk by Coronavirus: Amex GBT Investment Deal Falls Through

Dennis Schaal photo
Dennis Schaal

Photo Credit: Coronavirus' impact on business travel contributed to a decision by two investors to back out of a big investment deal with American Express GBT.  Adobe / Michael Jung

Skift Take

Relations are getting testy between American Express GBT and deep-pocketed investors that are backing out of a big deal. Regardless of the outcome of a lawsuit being argued in a Delaware court, Amex GBT should have plenty of money at its disposal to go shopping for strategic investments in business travel later this year.

Private equity firm Carlyle Group and Singapore sovereign wealth fund GIC are pulling out of a deal to invest in American Express Global Business Travel, a corporate travel booking service that is 50 percent-owned by American Express, according to published reports.  The investment would have given Carlyle and GIC a 20 percent stake in American Express GBT for $900 million and placed a value on the company of $5 billion. It's just one of several deals so far that are being tripped up by uncertainties created by the coronavirus pandemic. American Express GBT used to be entirely owned by American Express, but was spun off as a joint venture in 2014. At the time, the travel agency received a $900 million investment from a group led by Certares and a Qatar

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