M&A

The investment will be used to expand the firm's data centre businesses across APAC at a time when competition in the hyperscale sub-sector is fierce.

The two funds, which both count public-sector workers among their membership, say a merger will lead to stronger returns and lower fees for members.

First State Super CEO Deanne Stewart will continue as chief executive of the merged entity, which the two funds said would provide access to more investment opportunities and reduce costs.

The combined entity would have more than A$180bn of AUM and be larger than the country’s current largest fund, AustralianSuper.

The two funds are the first to merge using an extended public offer licence, allowing the combined entity to maintain two separate brands and leaving open the possibility of other superfunds joining in future.

The two industry superfunds, which both have significant infrastructure commitments, hope to increase returns and lower fees for members.

The funds will maintain their individual brand identities but pool administration and investment resources under the deal.

It’s all in the timing – or is it? We speak with Howard Marks and Bruce Flatt about the deal that has got everyone talking.

A merger would create country’s second-biggest superfund, behind only AustralianSuper and ahead of QSuper.

Sister publication PEI's interactive charts paint a picture of how the two would marry together.