Melbourne-based AustralianSuper and Sydney-based Club Plus Super agreed to work toward a potential merger, the funds said Thursday.
Exploring the benefits of a merger is in the best interests of Club Plus Super's participants, with the A$210 billion ($162 billion) AustralianSuper emerging from a "rigorous process" as the choice to provide the best financial outcomes for them, Stefan Strano, chief executive of Club Plus Super, said in a joint news release.
An AustralianSuper spokesman said there are no timelines for coming to a conclusion regarding whether a merger would be in the interests of both funds' participants.
The announcement comes as a pickup in super fund consolidation over the past year is challenging AustralianSuper's status as the industry heavyweight.
In mid-March, Brisbane-based super funds QSuper and Sunsuper confirmed they will merge by September to create a A$200 billion fund serving roughly 2 million participants. Later that month, Australia Post Superannuation Scheme, a Sydney-based fund with A$8 billion in retirement assets, said it would enter into separate merger talks with Sunsuper.
