A merger is planned between the University of Reading and Henley Management College, which could result in the creation of one of Europe's largest business schools. Gordon Marshall, the university's vice-chancellor, said the union was a "marriage of perfect complementarities". Reading's business school has more than 1,600 students and boasts a research rating of 5. Unlike Henley, however, it does not offer an MBA programme or focus on executive education at present. "The Government is encouraging universities to engage with employers, and that's exactly what we're doing," Professor Marshall said. He said the merger - along with a plan to spend £35 million on a new business school building - was part of a strategy to invest in areas where the university already enjoys a competitive advantage.