American Express Company (NYSE: AXP) today announced that its U.S. co-brand and merchant acceptance agreements with Costco Wholesale Corporation are set to end on March 31, 2016.
"We are proud of the value created over many years for Costco, for our Card Members and for our shareholders," said Kenneth I. Chenault, Chairman and Chief Executive Officer of American Express. "Taking a very disciplined approach, we began discussions on a possible renewal with Costco well in advance of the contract expiration. However, we were unable to reach terms that would have made economic sense for our Company and shareholders. Instead, we will focus on opportunities in other parts of our business where we see significant potential for growth and attractive returns over the moderate to long term."
The current agreements with Costco are set to end on March 31, 2016. Until that time, all American Express credit cards will be accepted at Costco warehouse stores in the U.S and on Costco.com. All co-branded cards from American Express and Costco can be used any place American Express cards are accepted through March 31, 2016.