Prime Super and Combined Super have announced that they intend to merge, saying that they have signed a Memorandum of Understanding and are in the advanced stages of discussions.
If the merger, which would be subjection to the completion of satisfactory due diligence, took place, the merged fund would manage assets of around $5 billion for in excess of 120,000 members.
Combined Super chair, George Kogios, said that the merger would provide both funds’ members and employers with significant benefits to scale.
“The synergies between Prime Super and Combined Super are strong and we see the ability to continue that small fund level of personal engagement as a strong positive for our members,” Kogios said.
“The additional scale of Prime Super will allow us to demonstrate a real reduction in the cost of superannuation for our members.”
Prime Super chair, Alan Bowman, pointed to the funds’ shared vision for the future of superannuation and complementary fund cultures as key to the merger decision.
Should the merger proceed, a number of Combined Super directors would be appointed to the merged Prime Super board.