AgResearch and Lincoln drop merger

Plans for a merger of the nation's biggest science company, AgResearch, and Lincoln University have been downgraded to a "partnership".

"A partnership model would be preferable to a full amalgamation as it will be more cost effective and still achieve significant benefits for New Zealand," the two institutions said yesterday.

The nation's smallest university and the state science company would remain as separate entities but focus on working much more closely together.

AgResearch chairman Sam Robinson said in March that he was prepared to dump the branding the state science company had spent 17 years building to "get into bed" with Lincoln.

"The AgResearch brand is not worth a lot," he said. Its value lay in the 650 scientists working for it.

The merger was expected to provide a more stable base for research and enhance teaching, with a combined revenue of $230 million and assets of $485 million. It was expected to attract additional revenue of $50 million a year, above their existing operations.

There was speculation that doubling the size of the 131-year-old Lincoln University could give it sufficient critical mass to seek bulk funding for some science sectors, such as pastoral research.

But some critics said a merger could also cut off AgResearch from "capability funding" available only to Crown research institutes.

Yesterday, Robinson said the institutions had agreed to pursue "a substantial partnership" - though the form of that has not yet been agreed.

- NZPA