Opening January 2026: Inside One of the Biggest University Mergers in Australia

Alex Usher: Hi everyone. I'm Alex Asher and this is The World of Higher Education Podcast.
There's a huge story going on right now in Australian higher education, one that hasn't made many ripples outside the country yet, but really should have.
In January of 2026, two of the country's major universities will be merging. The old research intensive University of Adelaide, one of the country's so-called sandstone — meaning prestigious — universities, will be joining with the newer post Dawkins i.e., created in the early 1990s, University of South Australia, which began its life as the South Australian Institute of Technology.
The new institution, Adelaide University, will be a behemoth of a multiversity, among the five largest institutions in the country. I'm fairly certain I'm right in saying this is the largest merger ever of two anglophone universities. But there are a lot of questions about how this is gonna work out. How will the new institution manage to maintain two separate missions? One is a research institution and one is an access institution. How can two very distinct cultures be bridged? And also, how do you create a distinct curricular or pedagogical identity for a new institution?
With me today is David Lloyd. He's the Vice Chancellor of the University of South Australia, and until the merger happens, also the Deputy Vice Chancellor at the University of Adelaide, and as you probably guessed, he's one of the architects of the merger.
In the course of this interview, we cover a range of issues such as what are the benefits of mergers? Why these two institutions? Why now? And how on earth do you possibly make a merger of this scale actually work?
I can't do any of this justice in an intro, so let's just turn it over to David.
So David, why merge these two institutions and why now? Like what made this the right moment to bring these two very different, uh, institutions together?
David Lloyd: I guess sometimes we laugh and we say there's, there's never gonna be a better time. Um, I don't know if there's, if there ever is the right time. Uh, in this case, it's not the first tilt we've had at this. I think from 1991 when Uni SA was established, people talked about why would you create another university in South Australia?
Right now you've got a political landscape which is aligned towards supporting this. You've got an institutional ambition on two sides of a ledger, which, which kind of came from different motivators, but kind of call it a lesses. you've got leaders who've known each other for a long time. you've got great positions of strength financially in both institutions. And, um, and you've got this kind of a shared history where we came very close. Uh, we nearly did it in 2012. Nearly did it in 2018,
Alex Usher: Mm-hmm.
David Lloyd: We've kind of got it, it's like third time lucky.
Alex Usher: But, but what's, so I guess here's my question is, is what's the, what do you gain together that you, that you don't have apart? What's, what's the, what's the gain to here?
David Lloyd: So the game piece, uh, one is scale and, and, and Australian universities are, are, are large organizations and UniSA is a, is a large institution, 40,000
Alex Usher: Yeah.
David Lloyd: Of Adelaide's got about 30,000 students. So, so you together you get a combined institution with 70,000 students. Which makes it a $2.1 billion enterprise.
So, so it is a, it's a big, big, big activity. Now, big is not necessarily better, but, but big is, is, is financially stronger and more robust. I would say that in of that scale, the, that the mix of students that you create from this organization is one where it's about 75% domestic and 25% international on day one, which gives it a kind of a, a, very strong foundation to make it shockproof if we ever go through a situation like we had from the pandemic or if we go through more geopolitical perturbation. So you end up with a, a, a, a very robust organization. And then, uh, if you think about the way in which you can lever the, uh, the cash flow of an organization into its applications and resources, the 2.1 throws off a lot more than one.
Or, or, you know, and, and, and on that basis you have an
Alex Usher: Yeah.
David Lloyd: for, for investment.
Alex Usher: So you said this isn't your first go at this, right? That this is, this is actually, uh, at least the second that I know of a time that this has been considered. But, so take us back to, you know, so, you know, presumably at some point after 1991, people started to really say, you know, as, as uni SA grew from being, you know, an old technical institution into what it is now, there would've been various points where people would've said, Hey, there's a, uh, there's gains to be had from, from, um, uh, from a merger. So how did, for over a lot long period of 20 or 30 years here, what are the big turning points? Like what were the points where the light went off and people said, aha. That yeah, we should definitely do that.
David Lloyd: I, I think in the, in the origins of the institution in, in the 1990s. When, when the policy came through in, in the Hawk Labor government at the time in Australia and, uh, John Dawkins was the Minister for Education and the, the notion of the creation of these new institutions was something which went across the country.
In the formative time, there were, uh, faculties and, and, and activities in what would've been an Institute of Technology and a College of Advanced Education. And it became almost, uh, like a, a a, a shop around, uh, where, where people said, well, you know, this, these things could go to University X or these could go to University y or we could put 'em together and create a new university. And in, in and in South Australia, it became a new university. So it went from a town that had two institutions, which had, uh, an old established sandstone in the University of Adelaide and Flinder's University, which was a a 1950s construct, to suddenly having this new kid on the block in 1991, uh, which became a very, very quick challenger to the other two. It had a large share of the domestic market and the participation agenda, the driver for participation in Australia was to try and increase tertiary uh, attainment. And so a lot of people who'd never gone to university suddenly had access.
Then you play out over time. Uh, you get to 2012. In 2012, uh, there was a desire by, um, at the time, uh, the two institutions, the University of Australia and the University of Adelaide to, to do this. It, it didn't get up for all sorts of, I mean, I, I would think probably local, small considerations. And, and Peter Hoy, who's my co vice chancellor in Adelaide University, was the vice chancellor of the University of South Australia at that time. And, and Peter
Alex Usher: Uh, okay.
David Lloyd: left. He left and went to run the University of Queensland.
And
Alex Usher: Yeah.
David Lloyd: I was recruited to run the University of South Australia after that particular, uh, uh, manifestation of, of the desire, if you like. And I came in to an institution which, which had had thought about merging, had moved some way towards merging, but didn't merge. And, and six years later in 2018, the same kind of conversations were coming up again. And they tend to come into the cycle of, of when there's a change in leadership. Because when a, when a Vice Chancellor exits, people go, oh, well, you know, we could hire a new vice chancellor or we could put the universities together. It's a very, very simple way of looking at this. But, um, and in 2018, there was one of those changes as well, we went a far away down the road to, to explore an American merger. And the University of South Australia in 2018 withdrew from the actual conversations. We, we did a public exploration and, and we, and we said no, and we said no because of the business case. We couldn't see what was being articulated at that time as being something that would actually take the goals and ambition of the institution we wanted to be, to where we thought we should be through, through that, through the overhead of the creation of that, of that new institution. And then it settled down again. Um, then we go into what we talked about earlier on, the conditions that make it right now, and I guess we could, we could talk a little bit about some of those.
Alex Usher: Let me just ask you before, I mean the way you've described that, why from the University of South Australia's perspective, why is Adelaide the right merger partner? Why not Flinders?
David Lloyd: Yeah, yeah, no, it's a really good point. So, um, I, I can tell you that in, in the various machinations of, of the past, and I've been here now for 13 years, there have been times when I thought to myself, you could actually end up with a, with a very, uh, uh, quite a different landscape in, in, in South Australia where Uni SA and Flinders would, would deliver something which would be, uh, a kind of a, a, a young type of university, which, which would be, uh, pitted in the domestic market, if you like, against what would've been an older, established
Alex Usher: Mm.
David Lloyd: And you can get a differentiator in, in, in a local marketplace. But the, the, the combination that came about and the reason we're where we are, where we are today, is that one of the big changes that happened was that in, uh, 2021, while in opposition, the, the, the, the, the now state government, uh, while they were in opposition, produced a policy, and a policy position, which said that were they returned, uh, to, to, to, to, to power. They would commission a, uh, a commission of merger, a merger commission to look at the merits of com combination with, with a view to combination. It was a very determinative policy. And so they'd said in 2018 they thought it, it was, it was a missed opportunity and they were going to do a, a process by which they determined what should happen next, uh, which makes it an interesting position for, for a university to be in, because you have, uh, you have a, a, a kind of a, an external body that might say to you, you've gotta merge and you have to merge with this institution or that institution. So you, you've got a loss of autonomy and a loss of,
Alex Usher: Mm.
David Lloyd: of, of, uh, control in that, in that situation. But what was really interesting about that policy position was the state and ambition to have a university that ranks sustainably in the top 100. If you go back to the combinations of the institutions, the combination of a Uni SA Flinders institution would not be capable without a significant uplift in its investment to move to sustainable position in the top 100.
Alex Usher: Mm.
David Lloyd: a Uni SA University of Adelaide, one would, and so some of those things become determinants of, of the path you might take.
Alex Usher: Interesting. So I'm just thinking there's, there's one other country that's really, uh, uh, moved in this direction, which is mergers specifically with the point of getting institutions in the top 100, and that's France, right? So, uh, and you've seen a lot of, in, in, uh, Strasbourg and Paris-Saclay and those kinds of places.
Did you spend much time looking at, at, at the dos and don'ts from the, the French experience or, or any other international experience in, in mergers?
David Lloyd: We, we did spend some time, um, we, jurisdictional variability in, in, in, in, in the amalgamation of institutions is, is, is, is quite significant. The, the institutional creation piece that we looked at, uh, uh, with, with a, with a kind of a, a weather eye on how to do it was, um, the creation of the University of Manchester. But like that, that's quite a long time ago now. Um, when we looked at a French one, the friendship approach seemed to be to put a veneer of amalgamation
Alex Usher: Yeah, that's, that's fair.
David Lloyd: and, uh, and, and to drop a kind of a cash bundle on top of it to make the veneer coherent, which is almost like a, a, a system. Uh, you've created an amalgamated system, but not an amalgamated institution. And for our perspective, I mean, th this is a non-trivial exercise that we've undertaken, um, and, we didn't want to just kind of have, uh, an umbrella that said this is a merged university. We wanted to create a new university. And the, the conditions of, of entry to the process from the University of South Australia, were, and were very clear, we will create a new university, and that new university will have its own mission. It'll have its own purpose, it'll have its
Alex Usher: Right.
David Lloyd: and we'll do all of those things. So the French one, French one doesn't really do that. The, the, the, the lesson from the French approach was that if you put an ear on something and if you're Paris-Saclay, you can become a young university again, which is quite an interesting piece. The Sorbonne is a young university again,
Alex Usher: Mm-hmm.
David Lloyd: that to me was an interesting, uh, reflection of how these things are perceived. So we felt if we did a really well, did a really integrated position well, then we'd have a young university, a new university, and all of that kind of establishment, I guess pedigree behind us.
Alex Usher: Yeah. We’re going to take a short break. We’ll be right back.
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Alex Usher: And we’re back. Uh, so David, uh, I assume, I'm not sure exactly the process that you used, but presumably there's some sort of letter in of intent or a memorandum of understanding that says, we're gonna do this, we're gonna be serious. Uh, how does the planning process unfold, right? Like, like, you know, you've done the initial feasibility, you've, you've assured each other that you're in good faith here. How do you move through the bottlenecks of institutional governance and stakeholder engagement and all those kinds of things? How do you get to the finish line.
David Lloyd: Um, with great tenacity is is, is, is I, I think that it's important. We, we started our conversation, uh, Peter and I, as an informal conversation in 2021. And we're gonna open the door of the new university on, you know, the, the first Monday of 2026, which is the, the 5th of January. Um, so it's a long road from those informal conversations to the delivery of a, of a, of a, of a functional, operational, competitive institution. The, the, the pluses in, in the ledger where we have very much a, a, a, an intent from the state government to enable this. And in, in our system, it's the state government legislation, which creates universities, but then you have to negotiate with the federal government as to how you're gonna be recognized as an Australian university with
Alex Usher: And And funded. Yeah. Yeah.
David Lloyd: So, um, in on the local sense, we could stand up a body corporate, but we had to have legislation pass the house. So, so, so it was far, far more complex than it, than MOU, we actually had to draft legislation and we, we, the mechanistically, we created a new body corporate, a new university that sits alongside the existing two institutions. So when I'm Co-VC of the new Adelaide University, I'm still the vice chancellor of the University of South Australia and they're independent organizations and autonomous organizations. One of which wants to create the other one while the other one is in existence, uh, uh, legislatively. So it's, it's quite a, it's quite an, an unusual, uh, construct. When we engage them with the federal government at the same thing, this goes back to why now, the federal government, which is a federal labor government, have a, a, a desire to transform participation and to widen participation. And when we went in and said, we will have the, the largest population of domestic Australian students, of any institution in the country. We become a sovereign educator we are going to be delivering a, a, an equity and participation agenda for you at a scale, what you won't get with, with any other Australian university. Then it becomes a conversation about, well, how do we help you to set up.
Alex Usher: Okay, so you have, as I understand it, you've got some kind of transition council. I'm not sure if that's like a joint transition council for both institutions or each of your own transition councils. How does that work? Who's on that council making the, the, the nitty gritty decisions and how do you make sure, you know, everything stays on track?
David Lloyd: Well, that goes back to, um, the legislation. Uh, so, so at, at when Adelaide University was stood up in legislation, it was in March of 2024. That constituted a, a council, so it's a council with a capital C that has a, the word transition in front of it, which kind of says what it's in charge of doing. The composition in that council was part of the agreement of the two organizations about how do you populate the board of this new company from the two existing boards of the two existing universities.
So when it stood up, it was a 50 50 from Uni SA and the University of Adelaide with uni SA, having the, having the right to appoint the, the chancellor of the university. So that was the difference because, uh, that was more some of the, the, the, if you like, the, the, the backroom machinations for, why is it called Adelaide University? Why is it not called the University of South Australia. Well, there's the, the act of the university is based on the University of South Australia Act, and University of South Australia had the right to appoint the transition Chancellor
Alex Usher: Right.
David Lloyd: in reality. It has that function as a university council, completely independently and completely autonomous of the two institutions.
So everybody had to step off the old institutions to only go into the new one and act in the interest of the new one by law. And what it, what it does is provide a governance framework for us as an executive, to just bring through, uh, the decision. So there's a, they have that, that um, uh, hand on on governance. They have the hand on the approval of the strategy, but it's the executive of the university, which was myself and Peter and a team drawn from the two universities in the first instance. And now we've moved to appointment of deputy vice chancellors who sit, who are employees of the new Adelaide University.
We brought forward the strategy, but the strategy had been formed from the business case on white paper that the two universities had independently decided was in their own interests to create this new institution. So if you go back in time to 2022, we were having a conversation about what will we create? What would it look like? Why would we do it? How much would it cost? We interrogated that into a solid business case and a, and a rationale for, to do, to do this. And then we translated that into a strategy to be deployed in the interest of the institution, which runs not just from its inception in, in 2024 in legislation, but actually runs all the way to 2030, which is when the institution will reach its goals that we said we wanted to have a steady state university of scale that does all the things we want, uh, in, in terms of a for purpose, accessible, and excellent institution.
Alex Usher: So. One thing that's really struck me about this process, looking at it from, you know, 8,000 miles away, um, is it seems to have been remarkably smooth. You know, I mean, mergers, uh, you know, often cause turbulence with alumni communities that, you know, and I don't, you know, understand the geography of Adelaide very well. So, you know, sometimes, you know, if it's one part of town gets some things and other parts don't. But also the fact that this is an institution that where there's a lot of overlap in terms, I know you have different origins and different uh, you know, stories and you have different specializations, but there's still some overlap in terms of, uh, departments and programs, and that's often where the biggest, um, you know, banging of heads happen is getting people to, to play nicely together. Uh, but you seem to have managed that, um, like what's the secret here for a smooth merger?
David Lloyd: Um,
Alex Usher: Yeah.
David Lloyd: Alex, is, is third time lucky, right? On one on one level? Uh, it's not, it's, as I said, it's not our, it's not the first rodeo. It's not the first time this has been considered. So there's a certain amount of, um, uh, inevitability in, in, in, in the way in which we, we presented that there's a, there's a policy position, there's legislation, there's a government behind this.
So, um, it became, and that, that's, that's, that's, that's only gonna get you so far because you can, you people will go into the trenches and dig in and, and you, you, you could have, uh, as you say, a significantly turbulent time on the way through. If, if you just said, we're gonna do this because we were told to do this, and here we go.
What we had were two universities who had gone through their own internal process of interrogation through their academic boards, through their senates to say the creation of this thing is actually in the interest of our individual institution and in the interest of the state. And, and we will act in, in best interest of the creation of this new thing from two different perspectives. Because, you know, each institution had its own view as to what it would get when it ceased to be and becomes this new institution. It's the, there's a Batten pass here between both organizations to the new organization. But when we went about the mechanics of creating the content, we said, well, you know, this is not just a lift and shift of, of, you know, the activities of, of, of both organizations into this veneer or umbrella. We, we, determined that we would actually create a new structure. We determined that we would actually deliver a new curriculum, and that we would scaffold in the, the content of all of these programs through an Adelaide University future lens, not the, not the past of uni SA or the past of the University of Adelaide. And what was remarkable, and I think fortuitous.
And so you go back to like, what, what, what can people learn from this? When we bring the two faculties of, you know, two marketing teams from, from, from the, the school to marketing, and we say, we want you to, to articulate a new curriculum. You get the best of both and there's no sense of loss. And there's a great sense of academic, uh, alignment in the creation of that new product. And we did that for everywhere where we had competing common programs, you know, where we got two business degrees, we got two law degrees, we've got two science degrees. The teams who own those institutional competitive programs of the past came together and said, well, what would a new one look like when we start, not with the past, we start with a blank piece of paper. And that has been incredibly unifying for, we have thousands of academics who have gone through that process and will continue to go through that process on the way through to 2030 as well.
Alex Usher: So you're talking about new programs here. What's striking again, from, from a distance is the, the, the one commitment, which I understood was made fairly early on, uh, about pedagogy and a move away from a traditional lecture system. Um, you know, a, a commitment to the institution would be moving away from in-person lectures.
Uh, is have I got that right? That that's, that that's the plan.
David Lloyd: the, I love, I I, I love having these conversations. Um, where, where, where, uh, the, the, the, the, the, the 8,000 kilometer view is, you guys, you guys aren't gonna have
Alex Usher: That's why we're having this conversation, David.
David Lloyd: Exactly. We, um, and we had a similar conversation in Beijing. Uh, we were on a, we were on stage launching the new brand, and uh, and we had the same questions from, from, from, from journalists. We were not getting rid of lectures.
Alex Usher: Okay.
David Lloyd: Rid of the idea that students would sit in a room where someone talks at them for an hour and then they go away, and somehow there's been knowledge transfer from the person at the podium into the heads of the people in the room. We are going to have, uh, a kind of a more rich, engaging, uh, experiences in the classroom, which will be face-to-face, but the, the pre-reading, the pre-req, the pre- preparation will be the pr, the delivery of online content, which we'll expect the students to have done as part of their prep for that workshop or that tutorial, or the, the way in which they're gonna engage in, in a didactic fashion. But similarly, that core content which is delivered online is being structured to be com, uh, consumed as online content in and of itself. So if you're not in South Australia, you can engage with that across the whole
Alex Usher: Right,
David Lloyd: or internationally as well.
Alex Usher: so it's flipped classrooms at scale.
David Lloyd: Yes. Yeah,
Alex Usher: Okay. Uh, but that's one thing that you wouldn't necessarily have got out of individual departmental committees. That was an institution-wide commitment. Did, was there wide buy-in for that? 'Cause that seems like a, um, you know, even, even phrased as flipped classrooms rather than, you know, online classes, that seems still seems like pedagogically a big shift for, for academics to accept across such a broad set of of, of di disciplines all at once. How did that go?
David Lloyd: Yeah. I guess in, in a post COVID era, the, the, the experience that everybody had through pandemic, which is you can, you can go online and you can do it well, or you can do it really poorly, but if you do it well, you can actually have good student experience. And, and, and we, we have anchored everything, all of the, all of the, the, the structural decisions through a lens of student experience and student success. So, the evidence base that we have for the actual student satisfaction levels in, in well-delivered structures like that, is that, that if you, if you scaffold it up properly, the students actually have better experiences than they do in, in many of the actual face-to-face, all traditional lectures. Uni SA, you go back to this rationale of the, the strengths of the institutions. Uni SA in 2018, we created a a, a division called Uni SA Online. Times Higher have said now to us, it's number one in Australia for online education and we're top 10 in the world. So, so the, the, the, the engine of, of creation of content and the pedagogical, uh, rigor behind that is very, very strong. You start to layer that into an institution which has got the generational, uh, pedigree, uh, uh, and reputation for academic excellence that the University of Adelaide brings to the new Adelaide University, and you have a really interesting mix of, of things. Plus, it's not, uh, it's not a holist bolus, uh, kind of sweep of, of everything that, that happened before. The content is still owned by academics. The, it's being created, it's, it's how it's being curated into the presentation for the online presentations is, is, is, is institutionally, um, if you like, uh, yeah, the curation is institutional, but the, but the ownership is, is still at the, the academic.
Alex Usher: Got it. We're seven months away. A little, little more than seven months away from, from opening day. Uh, I, two questions. I mean, what are you looking forward to the most out of this and and what do you think institutions from outside Australia, what's the global implication of all this? What, what lessons do you think other people will want to take from it?
David Lloyd: Yeah. Um, the first part of that, I mean, for me, this has been a near five year journey to, to get this institution open. And, um, I think that, uh, for my, my, my daughter is, um, she's, she's, she's, she's gonna transition from, uh, she's just finishing a diploma with the University of South Australia at the moment in, she's going into her degree just in the next few weeks. She starts a mid-year entry, so she'll enter the University of South Australia just as it ends, and she'll exit from the ad, the, the Adelaide University when she finishes her degree, touch wood in, in, in, in three years time. So I, I have a hope that we've managed to engineer an organization and, and a, and an, and an institution, which will empower her and, and her peers and our colleagues and those future learners to be successful to, to, to attain, um, employment, to, to, to actually have a great experience on the way through. And there's, um, you know, it's not, that's not the motivation for creation of a, of a university, but when I look through it, I wanna see that we hit the metrics we said we, we wanted to achieve. It's, it's a very ambitious strategy that we put in place, but we had the financial resources and the timeline of planning that I think only this type of whole of institution change, which is if you think of it like that, could enable to, to, to, to be delivered.
Now, for me personally, I'm really looking forward to 2030. That's, I wanna get to that point and look back, not necessarily from within the organization because I mean, Peter and I, we won't be the vice chancellors next year. We've made a very conscious decision to hand over the bat to, to a new leader who will take this strategy forward. But I wanna look back and see how do they get to those pieces based on the breadcrumbs and trails that we put in place. And I also think in the next, the next few months, we'll have the inaugural rankings for this institution as we move into, into, into its first year of operation. Um, and I'm quietly confident that we're gonna hit our metric. And I'm, I'm really hopeful that when we do hit our metric, everybody who said, oh, you know, you can't do this, you'll go backwards. It's delusion, it's, this, it's that. They'll just be left there and they'll be eating crop, they'll be eating humble pie on the basis that the, these guys went ahead and did it. The, the former vice Chancellor of the University of Melbourne, currently the, the, he's like the, the, the lead in the department of the Prime Minister and cabinet. Uh,
Alex Usher: Glen Davis.
David Lloyd: Glen. Yeah. So, so Glen said to me at one stage, uh, good luck as you attempt the impossible. I think that for me, the, the achievement of that, that the, that was perceived to be so hard, we couldn't do it. That that's, that's, that's the real gratification I'll get out
Alex Usher: And the international perspective? What should others learn from it?
David Lloyd: Um, I think we'd be demonstrating that you, you can, you can go about this process in two ways. You can pull up your umbrella and you can put your veneer and cross and, and, and say, here's the system. Or you can take a planful, mindful, uh, I would call it, not a leap of faith, but, but a, an investment in, in doing it in a way which is a proper integration, a proper consideration of the, the, the delivery of a new organization. And that new organization will demonstrate that it actually has got that amplification, that it's more than the sum of its parts. Um, so I think we are demonstrating the possible
Alex Usher: David Lloyd, thank you so much for being with us today.
David Lloyd: pleasure. Thanks, Alex.
Alex Usher: And it just remains for me to thank our excellent producers, Tiffany MacLennan and Sam Pufek and you, our viewers, listeners, and readers for joining us. If you have any questions or concerns about today's podcast or suggestions for future ones, please don't hesitate to get in touch at podcast@higheredstrategy.com.
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Join us next week when our guest will once again be Brendan Cantwell from Michigan State University. You may remember him as the podcast guest from last fall who presently suggested, based on a close reading of Project 2025, that a second Trump administration might move the Republicans from a position of performative culture war with higher education sector to one of active sabotage and destruction, and we'll see whether he can resist saying, I told you so.
Bye for now.