QSuper and Sunsuper Pty Ltd are gearing up for a merger that will create a $200 billion superannuation fund servicing two million members.
SunSuper announced that the merger – which will see the new entity become the second-largest superannuation fund in Australia – is scheduled for September 2021.
SunSuper CEO to lead new superannuation fund
The release advised that Sunsuper CEO Bernard Reilly will lead the merged entity, a move welcomed by Sunsuper chair Andrew Fraser and QSuper chair Don Luke. They said in a joint statement:
Bernard brings a global perspective, with a proven track record in leading large-scale enterprises in Australia and internationally.
He is an exceptional candidate to lead the establishment of what will be a major, and enduring, Australian superannuation fund.
According to the release, QSuper CEO Michael Pennisi intended to leave in October 2020 following his 5-year tenure. However, he stayed the extra months to see the merger through.
QSuper's side of the new business puts $120 billion on the table and brings 600,000 members to the deal. SunSuper brings $80 billion to the fund and 1.4 million members.
QSuper and SunSuper move to finalise deal
As the historic superannuation deal marches toward its September closing, both parties are ironing out the conditions.
According to a report in the Australian Financial Review, the Queensland Government supports the merger depending on conditions that are under negotiation. These include that the new entity maintains the same defined benefits and associated liabilities as the original funds. In addition, the new entity must have government representation and satisfy key stakeholders.
Commenting on the agreement, Mr Fraser and Mr Luke said:
Each of our boards believe that signing a Heads of Agreement is in their members' best interests and we are each taking the next step to realise the potential of this merger.
The heads of agreement signed by SunSuper and QSuper is a non-binding agreement. If the merger is successful, one of the biggest financial powerhouses in Australia will take shape.