American Express 2013 Annual Report Download - page 20

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AMERICAN EXPRESS COMPANY
2013 FINANCIAL REVIEW
Competition remains extremely intense across the Company’s
businesses. While the Company’s business is diversified, including the
corporate card business, a large international business and GNS
partners around the world, the global economic environment remains
challenging. In addition, any impact of potential U.S. income tax law
changes or volatility in foreign exchange rates remains uncertain.
As announced during the third quarter of 2013, the Company plans
to create a new joint venture for its Global Business Travel (GBT)
operations. It is expected that GBT’s operations, business relationships
and other assets would be held and operated by the joint venture
entity. As presently contemplated, at the closing of the transaction the
Company would maintain an approximate 50 percent ownership stake
in the joint venture, while an investor group would own the remaining
interest. The transaction remains subject to the execution of definitive
agreements and receipt of regulatory and other approvals. Assuming
these conditions are met, the Company would plan to close the
transaction in the second quarter of 2014. The Company would expect
to use a substantial portion of any gain recognized upon a closing of
the transaction to invest in the Company’s growth initiatives.
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