Super merger on cards
Financial fund giants move a step closer
QSUPER and Sunsuper have moved a step closer to creating a $182 billion Queenslandbased financial giant.
The two funds have signed a memorandum of understanding to start a due diligence process to explore a merger.
QSuper and Sunsuper revealed in November they were in preliminary discussions about a partnership that would create a super fund goliath to take on southern state industry giants such as AustralianSuper and retail funds run by the big banks.
The bosses of QSuper and Sunsuper – which together employ 1850 people – previously said they would consider whether a partnership would benefit members.
High-level discussions and an assessment of both businesses over recent months have found there are sufficient potential benefits to members to proceed to due diligence, the funds said yesterday.
They noted any deal “would be subject to the trustees of each fund determining the agreed structure is in the best interests of members and the appropriate regulatory approvals and passage of enabling legislation”.
QSuper chairman Don Luke said the fund entered merger discussions “because
Sunsuper chairman Andrew Fraser, a former Queensland Treasurer, on the potential merger with QSuper high-level analysis showed a real possibility of major benefits for members”.
“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,” he said.
Sunsuper chairman
Andrew
Fraser, a former Queensland Treasurer, said the merger would only proceed “on the basis it will benefit the membership of Sunsuper”.
“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,” Mr Fraser said.