First State in Merger Talks with WA Super

Investment Magazine

First State Super and WA Super are in potential mergers talks, the latest in a flurry of deals that are expected to sweep across the $2.9 trillion superannuation industry this year. First State, which is still finalising its tie up with VicSuper, has signed a Memorandum of Understanding with the $4 billion WA Super fund to undertake an extensive due diligence process that will likely be completed by mid year, according to a joint statement. First State chief executive Deanne Stewart said the motivation for the $105 billion fund was to grow its national footprint.

“The ability to merge with WA Super does give us a strong presence and ability to support our members in Western Australia,” she said in an interview. “There are a lot of conversations going on in the market at the moment so you have to make sure you having the right conversations with the right people.” First State’s tie up with VicSuper to create a $129 billion is still expected to be completed by June 30, just in time for a final decision to be made on whether to proceed with the WA Super merger.

The rest of this article can be found at investmentmagazine.com.au.