Australia’s Myer and Baillieu families have agreed to merge their family office operations, known as MFCo and Mutual Trust respectively, to create a new $3bn wealth management firm.

The merged entity will operate under the name Mutual Trust. Myer Family Investments (MFI), the holding firm of Myer family, will become the single largest shareholder of the combined entity with a 35% stake.

Ex-UBS Australia chairman Gordon Dickinson will continue to serve as chairman of the combined group. The board of the combined group will include nine members, with three directors to be appointed by MFI.

As a combined entity, client experience will be enhanced and the financial strength of the combined business will benefit all stakeholders,’’ Dickinson noted.

The deal is expected to be wrapped up in October 2017, subject to regulatory nod.

MFI CEO John Russell said: “The combination of these businesses provides real benefits for the clients of both organisations and will create a stronger and deeper platform.’’