Two leading universities join hands in powerhouse merger

Two leading universities in London, St George’s and City, University of London, have successfully merged to form City, University of London. Following the voluntary merger, the university which is now named City St George’s, University of London, has gained a stronger grip on financial health during a particularly fragile trading period for universities across the UK.

The powerhouse merger of two leading universities in London, St George’s and City, University of London, completed on 1 August 2024.

The transfer agreement formalising the merger plans was signed in February 2024 and submitted for regulatory approval, which was subsequently secured. The full integration, including combining branding, is expected to take several years.

The merger combines the specialities of St George’s, a specialist health university, and City University, creating City St George’s, University of London.

Following the merger, City St George’s, University of London, is now the largest supplier of London’s health workforce, making it a valued contributor and force for change in the healthcare industry.

Following the merger, City St George’s, University of London, is now the largest supplier of London’s health workforce, making it a valued contributor and force for change in the healthcare industry.

The higher education sector is in a vulnerable state as universities endure the crippling effects of falling student numbers, a declining international student population, higher operating costs, and increased competition.

The voluntary merger provides both universities with a fighting chance to remain financially resilient and strengthen their position as one of the largest higher education institutions for students in the capital.

The university issued the following statement in response to the merger:

The voluntary merger has enabled us to become one of the largest higher education destinations for London students, and a powerful multi-faculty institution with a distinctive focus on professional education and research at the frontier of practice.

…Now united, the School offers an unparalleled breadth of healthcare disciplines, fostering collaboration to drive progress in treatment, population health monitoring, workforce development, leadership, policy, and advocacy. This unique combination of expertise positions the School as a true ‘health powerhouse’ for students, researchers, and the NHS.

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The higher education sector is enduring a string of unique challenges, including exponentially higher Employer’s NIC, which tightens the budget for already cash-deficient universities.

The sector is also facing growing competition as higher education alternatives increase in availability, such as apprenticeships, degree apprenticeships, and employer-led programmes. With declining student numbers and a lull in appeal for the traditional university route, higher education institutions must revive the industry.

The merger route provides a lifeline to higher education providers experiencing severe financial turbulence due to growing cost pressures. By combining specialities and achieving scale through collaboration, distressed universities can secure the best outcome for the current and next generation of students.

At Education Advisory, our highly esteemed higher education specialists can perform a confidential school health check and advise on a range of actionable solutions. The Education Advisory team are experienced in navigating the legal and regulatory complexities pertaining to higher education mergers. If your higher education institution is in the early or advanced stages of financial distress, arrange a confidential and no-obligation consultation with our HE specialists.

As a school leader, you carry important legal duties under charity and company law. Failure to act in the best interests of the school, especially in times of distress, can result in personal liability or reputational damage.

Key responsibilities include:

• Ensuring the school remains solvent
• Seeking advice from professional advisors at the earliest signs of trouble
• Keeping full records of decisions and justifications