Sale Of Share Of AmEx Business Travel To Carlyle And GIC Appears Dead - pymnts.com

Sale Of Share Of AmEx Business Travel To Carlyle And GIC Appears Dead - pymnts.com


Sale Of Share Of AmEx Business Travel To Carlyle And GIC Appears Dead - pymnts.com

Posted: 10 May 2020 06:39 PM PDT

American Express Global Business Travel, seeing its sales more than halved from the pandemic, could now also lose out on a purchase by private equity firm Carlyle Group and Singapore-based GIC, a sovereign wealth fund.

The two firms are reportedly backing out and claiming AmEx had violated several of the terms of the agreement, sources said. In a Delaware court filing last week, the firms claimed AmEx had been planning to use the investment to fund operating losses. AmEx denied that.

The deal, planned to happen for $5 billion including debt, was announced in December and supposed to close Thursday.

But in April, that started to crumble when Carlyle began to think that the coronavirus-related shutdowns and effects on the travel industry could constitute a "material adverse effect." Carlyle's position was that the travel industry would be near worthless, which AmEx didn't agree with. But a Carlyle spokesperson said the company was "seeking a judicial confirmation that we have no obligation to close the transaction."

A third party acting on behalf of the sellers has filed suit to try and compel Carlyle and GIC to go through with the deal anyway. The company isn't party to the dispute.

A spokesperson for AmEx Global Business Travel said the backing-out of GIC and Carlyle "neither impacts GBT's ability to manage through the current environment nor constrains any future opportunity."

A loan to AmEx Global Business Travel for $1.2 billion, intended to go towards paying stakeholders and funding the possible acquisition, may also be in jeopardy if the deal with Carlyle falls apart.

Global Business Travel is 50 percent owned by credit card company American Express. In 2014, the credit card company sold the other half to a collective led by investment group Centares, which is the half Carlyle and GIC agreed to purchase some of last year.

The coronavirus pandemic's disruption of most retail businesses has led to dissolution of other such deals. In April, Sycamore Partners began looking for an out on a deal to buy Victoria's Secret. Sycamore Partners claimed that Victoria's Secret parent L Brands violated that deal by furloughing staff and not paying rent.

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LIVE PYMNTS ROUNDTABLE: THE RISE OF B2B ECOMMERCE

The holy grail of the consumerization of B2B payments is making it possible for B2B buyers and suppliers to order products and pay online as easily as consumers and merchants do today. Join PYMNTS CEO Karen Webster and special guests Sandra Blair, EVP of payment services provider MerchantE, and Keith Smith, Founder and CEO of Payouts Network, as they dig into why B2B ecommerce has suddenly become a hot topic for even the most analog of B2B trading partners, why the potential for instant supplier payments is driving buyer and supplier interest, and what it will take to truly move those processes from offline to online in months, not years.

American Express Canada Introduces Offers To Support SMBs - pymnts.com

Posted: 28 May 2020 02:16 PM PDT

In an effort to bring greater value to its small and medium-sized business (SMB) card members, American Express Canada is debuting limited-time offers as well as solutions. The company said that the changes seek to tackle the evolving requirements of today's businesses, with the inclusion of modifications to spending habits as well as limitations on travel per an announcement.

Business platinum card members, in one case, can receive a $45 statement credit for making a "qualifying purchase" after taxes of a minimum of $45 at the Canadian FedEx website or at FedEx locations that are participating by the end of the calendar year. They can earn as many as six statement credits for each registered card over the offer period for an overall value of as high as $270.

In addition, business platinum card members can also receive a single $250 statement credit by using their registered card to make a minimum of $250 in "qualifying purchases" after taxes at a page on the Canadian Dell website or through a Dell technologies advisor by phone by Aug. 27 of this year.

Business platinum card members can also receive a $40 statement credit for using their registered card to spend a minimum of $40 in qualifying purchases after taxes by the end of the calendar year at participating Canadian mobile service providers. They can earn as many as four statement credits per registered card over the offer period for an overall maximum $160 value.

Card members have to log onto their online services account or the American Express Mobile App and register a card that is eligible in the Amex Offers area.

American Express Canada Vice President and General Manager, Global Commercial Services Paul Roman said in the announcement, "This is a crucial time for businesses as they work to overcome the many challenges brought on by the COVID-19 pandemic, which is why we remain focused on supporting businesses throughout this difficult time."

In separate news, American Express Canada had announced the rollout of the American Express Business Edge Card in October, which is designed to bolster spend management for small and medium-sized businesses in the country.

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LIVE PYMNTS ROUNDTABLE: THE RISE OF B2B ECOMMERCE

The holy grail of the consumerization of B2B payments is making it possible for B2B buyers and suppliers to order products and pay online as easily as consumers and merchants do today. Join PYMNTS CEO Karen Webster and special guests Sandra Blair, EVP of payment services provider MerchantE, and Keith Smith, Founder and CEO of Payouts Network, as they dig into why B2B ecommerce has suddenly become a hot topic for even the most analog of B2B trading partners, why the potential for instant supplier payments is driving buyer and supplier interest, and what it will take to truly move those processes from offline to online in months, not years.

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