Snowball Group and Shadforth Financial Group have joined forces to create a larger wealth management operation with over A$14.3 billion ($15.3 billion) in funds under advice, administration and management.

The so-called "transformational merger" involves an all-scrip takeover, where 2.14 Snowball shares will be given out for every one Shadforth share. This results in the issue of around 515.7 new Snowball shares. Upon completion of the deal, which is still subject to investor approval, Shadforth shareholders will see themselves owning 71 per cent of the new merged entity.

So far, directors at Shadforth, who own 13.2 per cent of the shares, have agreed to the offer. All present directors of both firms will serve as directors of the new company, with Snowball chairman Eric Dodd at the helm and Shadforth chairman Sam Gannon as deputy chairman. The group chief executive role will be taken up by Snowball executive Tony McDonald.