A merger between Equip and Rio Tinto Staff Superannuation (RTSSF) is expected later this year, following completion of due diligence.
Equip confirmed merger discussions and said the new merged fund would manage assets of $13.5 billion for approximately 75,000 members.
The merger would see the Equip board move to a model of one-third independent, one third employer, and one-third member directors. Equip said that Rio would likely have the right to nominate one of the employer directors.
Equip chair, Andrew Fairley, said the merged fund would deliver significant benefits of scale to members and employers, as well as underpin the continued development of innovative product initiatives, improved employer and member services, and expand the fund's education programs for members.
Fairley noted that the important considerations for the merger were complementary fund cultures, a common fund administrator, and a shared custodian service provider.