Industry funds AustralianSuper and AGEST have decided to merge to form a $46 billion super fund with almost 2 million members.
The merger will take effect in 2012, after the completion of the due diligence process.
"We are delighted that AGEST has chosen AustralianSuper as their preferred merger partner," AustralianSuper chief executive Ian Silk said.
"Above all else, the merger is about providing greater benefits for members and maximising their retirement savings," he said.
Silk said that the merger is in line with AustralianSuper's strategy to further increase its scale.
"AustralianSuper is determined to play a leading role in shaping the future of superannuation in this country in the interests of members. We have a very strong vision and AGEST shares that vision," Silk said.
"We aim to keep growing as scale enables us to deliver the best prospects for secure retirement to the greatest possible number of Australian workers."
The merger comes after AustralianSuper joined forces with Westscheme in June this year.
