ABP, the largest pension fund in the Netherlands, is in discussions with another Dutch scheme about a merger which would create a fund with €245bn ($358bn) in assets covering four million members.

Exclusive discussions will begin this week with Cordares, which has €26.5bn under management and manages the pension funds of Bpf Bouw, the industry-wide retirement scheme for the building industry and SPW, the pension fund for Dutch housing associations.