Australian superannuation funds MTAA Super and Tasplan will delay the merger they had set for Oct. 1 by at least six months, citing difficulties in moving ahead at the current time due to the COVID-19 pandemic.
Both plans remain "fully committed to the merger" but with an extended timeline, said Leeanne Turner, the CEO of A$13 billion ($7.5 billion) MTAA Super, Melbourne, in a news release Thursday.
The merger will now take place "no earlier than 31 March 2021," the release said. The two plans announced the Oct. 1 target date last November.
Ms. Turner and Wayne Davy, CEO of the A$10 billion Tasplan, Hobart, Tasmania, cited sustained market volatility, which has led to heightened participant needs for advice and support, and concerns about the supply of "specialist services" as key factors behind the extension.
"Extending the merger timeline will ease stress and help our staff better manage workloads and their personal arrangements," Ms. Turner said.
