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First State merges with WA Super
Thomson Geer has advised the WA Local Government Super on its $4 billion merger with First State Super.
Tony Zhang
Firm: Thomson Geer (WA Local Government).
Deal: Thomson Geer has advised WA Local Government Superannuation (WA Super) on its merger with First State Super, soon to be renamed Aware Super.
The deal, which has been in the works since early 2020, completed at the end of July 2020 after an extensive due diligence process, will see WA Super’s approximately 50,000 members along with $4 billion of funds under management, transferred to First State Super.
Area: M&A, superannuation.
Key players: The Thomson Geer team consisted of partners Scott Charaneka and Stanley Drummond.
Deal Significance: First State Super will merge with fellow industry fund WA Super, and will elevate its position as Australia’s second-largest superannuation player with almost $130 billion in assets under management.
The two funds have completed a four-month process of due diligence and on Thursday announced they will proceed with the merger, which was first flagged in March and is expected to complete by November 30.
“WA Super was pleased to partner with Thomson Geer as part of the [merger deed] transaction with First State Super,” WA Super chief executive officer Fabian Ross said.
“Having worked with Thomson Geer for a number of years now, meant that their deep understanding of our business, coupled with Mr Charaneka’s wealth of experience in the superannuation industry, ensured we had access to his trusted support and advice.
“Mr Charaneka’s professionalism and dedication to WA Super members [were] integral in reaching this merger decision, resulting in the optimal outcome for WA Super members, whereby they will be better off over the [long-term] as a result of this merger.”
This deal is in tune with the unprecedented consolidation of Australia’s superannuation industry, as a result the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
The merger is set to make First State Super one of Australia’s top three super funds, with its combined assets under management equating to approximately $130 billion.
