SYDNEY (Reuters) – Australian telecom major Telstra (OTC:)’s pension fund arm TelstraSuper will merge with bigger peer Equip Super creating a combined fund that would manage around A$60 billion ($38.8 billion), the funds said in a joint statement on Tuesday.
The binding agreement follows the signing of a non-binding memorandum of understanding in September to explore a merger between the two funds.
TelstraSuper will be retired after the closing of the merger, expected to occur in late 2025, and the combined fund will have 225,000 members.
Equip Super, founded nearly a century ago, has around A$35 billion in funds under management and manages the superannuation arrangements for some of Australia’s largest corporations.
($1 = 1.5449 Australian dollars)