StatewideSuper, the $2.4 billion South Australian superannuation fund, will complete its merger with $1.7 billion Local Super by June 2012, says StatewideSuper chief executive John O’Flaherty.
“The merger is part of our strategy to bulk up and become the choice of employers in South Australia,” says O’Flaherty. “The synergies outweigh any differences.”
The merger will create a top-20 industry fund in Australia, he says. The new fund will have about 140,000 members, says O’Flaherty.
Government reforms of superannuation that include the concept of “stronger super” have pushed funds to merge, he says.
O’Flaherty says he will become chief executive of the new fund, with Nic Szuster, currently the CEO of Local Super, becoming his deputy. Juliet Brown will be chairman of an 11-member board.
Due diligence on the merger will last until the end of November, says O’Flaherty.