To merge or not to merge 

It has been widely reported that two long-standing established UK universities, The University of Kent and Greenwich University, intend to merge from the autumn of 2026, creating a new group called London and South East University Group (although the institutions have noted in their respective announcements that this name would be subject to consultation and approval). 

There have been various higher education institutions that have restructured themselves by merging their activities previously, including Manchester University and UMIST, the Institute of Education and University College London, and, more recently, St George’s University of London and City University. Earlier mergers in the higher education sector have tended to be undertaken by way of Act of Parliament, such as the merger of Royal Holloway College and Bedford College by the Royal Holloway and Bedford New College Act 1985.  

From the public statements and news reports, it is suggested that the model to be adopted in this latest scenario may be some kind of group structure which would enable each institution to preserve its brand and established corporate identity, although the details of any group structure would need to be carefully considered, not least to ensure compliance with the different constitutions of each institution. The University of Kent was established by Royal Charter in 1965, whereas Greenwich University is constituted as a company limited by guarantee.  

Both institutions have charitable status. The decision to enter into a significant collaboration or merger will be for the governing bodies of each autonomous institution, whose members will be acting as the charity trustees and who will need to determine what is in the best interests of each institution and its beneficiaries. Established guidance from the Charity Commission notes that while there is a benefit in having diversity and independence of charitable bodies, collaborative activity between institutions can help to address duplication of provision and promote a more effective use of resources. It will be important for the charity trustees of each institution to be satisfied that any merger or collaborative arrangements will not present unjustifiable risks. 

In terms of group structures, Charity Commission guidance notes that the governance arrangements should enable the trustees of each ‘subsidiary’ to take decisions solely in the interests of their charity and that each charity retains control of its assets. Other group structures exist in the UK higher education sector, including the University of London, which is a federation of 17 independent higher education institutions. 

Both universities are ‘registered higher education providers’ with the English sector regulator, the Office for Students, which will need to have a significant role in the merger arrangements in order to be satisfied with ongoing compliance with the Conditions of Registration under the Regulatory Framework and the protection of the degree-awarding powers of each institution. 

Given the challenging financial environment for the UK higher education sector, we may be embarking on a period of institutional consolidation.