TelstraSuper has called it quits regarding its proposed merger with Equip Super, citing it is no longer in its members’ best financial interests to proceed.
In a statement on Wednesday, TelstraSuper’s board said it had decided to terminate the heads of agreement that proposed a merger of the two funds.
The two funds had signed a binding heads of agreement in December 2024, following the signing of a non-binding memorandum of understanding in September last year.
“The board has concluded that it is not in TelstraSuper members’ best financial interests to proceed with the proposed merger,” the super fund announced on Wednesday.
“Bringing together two medium-sized funds is a complex process. As the merger process has progressed, and particularly in the period since the binding agreement was signed, it has become evident that TelstraSuper is unlikely to achieve our objectives for the merger, in the best financial interests of the fund’s members.
“As a result, the board has made the decision to bring planning of a proposed merger to a close. The board believes this is the right outcome for members.”
The TelstraSuper board continues to review the strategic direction of the fund, it said, alongside the options that are in the best financial interests of its members over the longer term.
Commenting on the news, TelstraSuper chair Anne-Marie O’Loghlin said: “TelstraSuper remains committed to helping members achieve the best retirement outcome possible and would like to thank Equip Super for their engagement throughout the process.”
The proposed merger would have seen Equip Super become the go-forward brand, with the TelstraSuper brand previously set to be retired in due course.
TelstraSuper first flagged its intention to explore merger options as part of its long-term strategy in May 2024.
In a statement at the time, the corporate fund said it was “currently in a strong and healthy position” with positive net member growth, high member advocacy, and a growing retirement segment.
“After careful consideration of the fund’s long-term strategy where size and scale are increasingly important, the TelstraSuper board has determined that our members’ interests will be best served in the long term by seeking a suitable merger partner aligned to the fund’s objectives and values,” it said last year.
