StatewideSuper and Local Super begin due diligence
StatewideSuper and Local Super have announced the commencement of due diligence ahead of a potential merger between the two superannuation funds.
According to StatewideSuper chairman Nicholas Begakis AM and Local Super chairman Juliet Brown, major shareholders from Business SA, SA Unions, the Local Government Association, Australian Services Union and the Australian Workers Union had given their 'in principle' support for the proposed merger.
PriceWaterhouseCoopers, KPMG, and Russell Investments have been appointed to undertake a shared process of due diligence which is expected to be completed by the end of November, the super funds stated. A final report will be prepared for presentation to the boards of both funds before the end of the year.
StatewideSuper is the profit-for-members industry super fund for South Australians, with around $2.4 billion in funds under management (FUM), while Local Super has around $1.7 billion in FUM and provides super needs to local government employees in South Australia and the Northern Territory. StatewideSuper and Local Super stated the merger of the two funds would result in FUM in excess of $4 billion.
The super funds believe the Federal Government's Stronger Super reforms will make the merger of smaller funds more likely.
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