Industry superannuation funds Cbus and CONNECT have announced a landmark in-principle agreement to merge.

Both Steve Bracks, chairman of Cbus, and Mac Russell, chairman of CONNECT, confirmed that a heads of agreement had been signed and the prospective merger date set for October 1, 2010.

CONNECT is the superannuation fund for electrical and communications industry contractors, while Cbus is the industry superannuation fund for the construction, building, infrastructure and allied industries.

“This merger is about serving the best interests of our members and employers,” said CONNECT chairman Mac Russell.

“Both funds’ members and employers will reap the benefits of greater economies of scale, efficiency and an even stronger overall market position,” he added.