Final hurdle for ITV merger

The government is expected to announce soon whether broadcasters Carlton and Granada have met the conditions attached to their merger.

The conditions are aimed at limiting the impact of the tie-up on the TV advertising market, and on the three ITV franchises that Granada and Carlton do not own.

They are expected to include a system of "contract rights renewals," overseen by an independent watchdog, which would limit the combined company's ability to raise the price of advertising slots.

Trade and Industry Secretary Patricia Hewitt is expected to issue a statement later this month.

The Office of Fair Trading, which has been monitoring the two companies' efforts to comply, was due to deliver a report on Carlton and Granada's progress to Ms Hewitt on Friday.

Merger limits

The two firms, which control about 52% of the television advertising market between them, were given permission to join forces last month provided they agreed to a set of "behavioural remedies."

The government said the safeguards must be in place by November, when Carlton and Granada hold their annual round of price negotiations with television advertisers.

The decision to impose behavioural remedies was welcomed by the two firms, which had feared that they might be ordered to dispose of their advertising sales departments instead.

They warned that selling their advertising sales houses would undo many of the benefits of the merger.