Two of Australia's richest families, the Myer and Baillieu families, are to merge their family office operations.
The combined entity would create a $3 billion wealth management and intergenerational advisory practice.
The Myer family’s holding company Myer Family Investments (MFI) and the Baillieu family’s Mutual Trust announced a conditional heads of agreement to combine Mutual Trust and the Myer family office known as MFCo.
The deal, one of the largest ever in the family office sector, will see MFI emerge with 35 percent of the enlarged Mutual Trust and it will become its largest single shareholder.
Due Diligence and Approval
MFI will appoint three directors to an expanded board of nine for the merged entity. Former UBS Australia chairman Gordon Dickinson will continue as chairman of the company, which will continue to trade under the name of Mutual Trust.
«Mutual Trust and MFCo both have focused on helping families with the challenges of managing wealth and their financial affairs across generations. As a combined entity, client experience will be enhanced and the financial strength of the combined business will benefit all stakeholders,» Dickinson said.
The merger is at this stage conditional on due diligence and regulator approval which is expected to be completed by October 2017.
