EISS Super, TWUSUPER to explore merger
EISS Super, TWUSUPER to explore merger
The two industry funds are edging towards a consolidation, having now stepped into a period of due diligence.
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EISS Super and TWUSUPER have signed a memorandum of understanding (MoU) to commence a formal due diligence process. Both funds will be exploring whether the merger will be in the best interests of their members.
The potential amalgamation would create a $12 billion fund, with 130,000 members.
EISS Super chief executive Alexander Hutchison commented the fund will have an obligation to proceed with the merger if it determines it’s in members’ best interests.
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Australia’s TWUSUPER, EISS Super to explore merger
Bloomberg
Australia s retirement plan for transportation workers, TWUSUPER, is looking at combining with energy-sector focused EISS Super.
TWUSUPER and EISS Super are exploring a potential merger, the two super funds said Wednesday.
Though talks have just begun, early signs suggest a merger would be in the interest of both funds participants, Frank Sandy, CEO of Melbourne-based TWUSUPER, and Alexander Hutchison, CEO of Sydney-based EISS Super, said in a joint news release.
TWUSUPER, whose membership is concentrated in Australia s transport sector, and EISS Super, focused on the country s energy sector, have roughly A$6 billion ($4.6 billion) each in participants retirement assets.
Commenting on the move, EISS Super chief executive, Alexander Hutchison, said he believed the fund had an obligation to its members to consider the benefits of a potential merger and to proceed if it was in their best interests.
“It is early days, but we are seeing a lot of potential benefits for members so a merger looks promising,” he said.
For his part, TWUSuper chief executive, Frank Sandy, said that there appeared to be strong synergy between the funds operationally.
“This merger can provide greater scale for both funds and has the potential to deliver cost savings to members across trustee services, administration and investments,” he said.