The paper discusses the factors which led to the merger of Royal Holloway and Bedford Colleges, University of London over the period 1981–85 and which resulted in the formation of Royal Holloway and Bedford New College in 1985. The merger was the first step in a radical reorganisation of the nonmedical Schools of London University. The paper examines the internal and external decision making processes involved, as well as the academic and financial planning. It suggests some lessons which might be drawn from the experience, which include the problems of estimating costs and benefits; whether or not there is an optimal minimum size for a university institution even when part of a Federal University; and the problems of reconciling strong creative leadership to deal with a continually changing external environment, with the traditions of participation and collegiality which are thought to have characterised the academic environment.

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