Equipsuper has withdrawn from its planned merger with Vision Super citing a potential breakdown in communication between the parties as the contributing factor.
In a statement from the Equipsuper board, released late Friday, the decision to walk away from the deal was not "taken lightly", but was "ultimately in the best interests of our members."
"We began the process of merging with Vision Super believing in the value of combining our funds; using benefits of scale to protect the future of 160,000 Australians with nearly $10 billion in managed assets, and making operational savings to place downward pressure on membership fees," the statement said.
"We believe these benefits are only possible with a board that is collaborative and effective and fully committed to the Equipsuper investment model as previously agreed. It is our assessment that the board of the combined fund would be unlikely to meet those requirements.
"Over the past 12 months, the board of Vision Super has failed to meet key dates, provide essential information and has breached or continuously sought to change several key parts of our Memorandum of Understanding and Shareholders' Deed."
Equipsuper does not have confidence that proceeding with the merger is in the best interests of its members, however has not ruled out future deals, the statement said.
"While we do not have any immediate plans to merge with another fund, we will certainly examine all options that are in the best interests of our members," it said.
"Equipsuper remains a well-managed and high-performing superannuation fund. We have full confidence in our staff, and we continue to deliver results for our members."
