The 42 industrial superannuation funds that own bank last month voted to approve the bank exercising its option to acquire .

The vote by the 42 funds represented the culmination of a strategy first outlined by Industry Fund Servicesand Members Equity more than two years ago.

The acquisition will result in the creation of a major financial institution, the equal of many of those providing backing into the retail master trust arena.

The merged entity will involve retail banking, business banking, wholesale funds management, retail funds management and superannuation fund services.

Commenting on the move, the chief executive of Members Equity Bank, , said it would provide substantial benefits.

“Members Equity will benefit significantly from the addition of a range of diversified financial services, including the leading funds manager,Industry Funds Management, which recently achieved $10 billion in funds under management,” he said.