QSuper and Sunsuper have announced they are taking steps towards a merger in a move that could create Australia’s largest super fund.
QSuper and Sunsuper have announced the signing of a memorandum of understanding to enter into a period of exclusive due diligence following an assessment of both businesses that found there were sufficient potential benefits to members to proceed.
“We entered into merger discussions because high-level analysis showed a real possibility of major benefits for members,” said QSuper chair Don Luke.
“Now that the MoU is signed we will embark on detailed analysis and due diligence over the coming months to see if major benefits do emerge. From QSuper’s point of view the merger will only proceed if it is clearly in the best interest of QSuper members.”
The two funds first announced that they were exploring a merger in November 2019, stating at the time that they would be exploring the capacity of the partnership to generate greater economies of scale resulting in more competitive fees.
“Any merger will only proceed on the basis it will benefit the membership of Sunsuper, and this work is now being undertaken in detail,” said Sunsuper chair Andrew Fraser.
“The potential capability of a merged fund to deliver scale benefits to all members into the future means we are obliged to test the possibilities and then act in the interests of our members.”
A merger would see the creation of one of Australia’s largest superannuation funds, with more than $195 billion in FUM.
The extension of the Banking Executive Accountability Regime (BEAR) to the broader financial services industry, including superannuation trustees, could see more large-scale mergers as funds seek to ensure long-term sustainability and create a buffer against stricter regulatory action.
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