16 Feb 2023
Over the past six months, AvSuper and the Commonwealth Superannuation Corporation (CSC) have been conducting due diligence to determine whether a merger of the two organisations could be implemented in the best interests of both AvSuper and CSC members.
At the outset of the due diligence, both parties acknowledged that the merger would require Government approval and the passage of any necessary legislation through Parliament.
CSC Chief Executive Officer, Damian Hill noted, “this process has revealed there is positive business case to support CSC’s merger with AvSuper, and AvSuper would be a viable merger partner for CSC.”
However, both parties acknowledged the complexity present.
“The merger could not be accommodated within the existing policy and legislative framework for the Commonwealth’s superannuation arrangements,” said Mr Hill.
Both funds said that the due diligence process had been thorough, cooperative and a valuable experience.
Mr Hill noted that he “appreciated the openness and willingness to share information shown by AvSuper that gave both funds deep insights from the merger process”.
AvSuper CEO Michael Sykes thanked CSC for its participation in the due diligence process. “It’s disappointing that the merger with CSC will not be proceeding further however our members need certainty around AvSuper’s future. We thank CSC for their time and consideration of the benefits that a merger could bring to both parties.”
CSC will continue to build on its 100-year history of providing superannuation services to current and former Australian Government employees and Australian Defence Force members, including completing its current five-year program to harness the latest in digital technology to better support and serve its customers using new administration and customer engagement platforms.