The Carlton/Granada merger has moved into the final phase as the competition watchdog hands its recommendations about the merger to the Department of Trade and Industry. Trade secretary Patricia Hewitt will now take 20 working days to rule on the deal.
The key concern over the proposed deal, which will essentially make one ITV company in England and Wales, is the commercial power wielded by a combined Carlton and Granada advertising sales operation.
Advertisers say that allowing the merger of both the companies' sales houses, as well as their production houses and network franchises, would mean one organisation would control more than half of the commercial TV ad market in the UK – giving them too much power.
Word is the commission will give Carlton and Granada two options if they want a merger to go ahead. Either they auction of a minimum percentage of ITV's ad airtime each year to a third party - this could then be traded in a secondary market, or they promise advertisers and media buyers that existing so-called 'share deals' would be maintained next year.
Under the merger plans, Granada boss Charles Allen would become chief executive of ITV, with Carlton's Michael Green as chairman.