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(February-2002) Battle heats up for BHP Steel’s super
The winner of possibly the largest full outsourcing deal in Australian superannuation history — that for the BHP Steel super arrangements with assets of around $700 million — is expected to be announced this month.
The deal involves becoming the successor fund for the accumulation section of the scheme, now that BHP Steel is being spun off following its parent’s merger with Billiton.
Colin Wirth, the CEO of the BHP Billiton Superannuation Fund, says following their evaluations, BHP Billiton and BHP Steel would prefer the fund to go to Towers Perrin’s SuperSolution. SuperSolution, which is not a master trust, also won the tender for the $650 million OneSteel fund after it was spun off from the BHP super plan about 15 months ago.
But the group’s plans have not been well received by the Australian Workers Union, which encouraged the Superannuation Trust of Australia (STA) to also submit a proposal.
Scooping BHP Steel’s super would be a major boost for STA, which currently has assets of around $3.3 billion. It was also a bidder in the OneSteel tender and is actively campaigning to wrench outsourcing tenders away from master trusts.
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