AUSTRALIA - The merger between the A$2.4bn (US$2.5bn) StatewideSuper and the A$1.7bn Local Super will move to the next stage, beginning the due diligence process following approval in principle from the funds' major shareholders.
StatewideSuper chairman Nicholas Begakis and Local Super chairman Juliet Brown said the merger has gained support from shareholders in principle from Business SA, SA Unions, the Local Government Association, Australian Services Union and the Australian Workers Union.
The two funds have similar shareholders despite having different profiles. Local Super consists of a closed defined benefit plan, and open accumulation and allocated pension funds. StatewideSuper consists of a master trust, and open accumulation and allocated pension funds.
The merger was announced in August and will create one of the largest superannuation funds in South Australia. The two funds have agreed to consolidate by 1 July 2012. (Global Pensions, 05 August, 2011)
PriceWaterhouseCoopers, KPMG and Russell Investments have been appointed to undertake a shared process of due diligence, which should be completed by the end of November. A final report will be prepared for presentation to the boards of both funds before the end of the year.
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