AustralianSuper and LUCRF Super plan to merge pending due diligence, a joint announcement said Tuesday.
The board of A$7.4 billion ($5.6 billion) LUCRF identified AustralianSuper, the country's biggest industry fund with A$225 billion in assets, as its best potential partner in an industry experiencing rapid consolidation.
Both funds are based in Melbourne.
"In the fast-changing superannuation environment, AustralianSuper was best placed to continue LUCRF Super's record of delivering value and returns for members," Charlie Donnelly, LUCRF Super's CEO, said in the news release.
Mr. Donnelly said LUCRF Super has delivered annual returns of more than 9.5% a year since its launch in 1978.
The merger is expected to be completed by the first half of 2022, subject to due diligence.
LUCRF, with 132,000 participants, is focused on workers in the warehousing, logistics, pharmaceutical, manufacturing and food production industries.
AustralianSuper manages the retirement savings of 2.4 million participants and has delivered annual returns of 9.49% over the past decade.