ITV giants Carlton and Granada are bracing themselves for the long awaited verdict of Patricia Hewitt, Secretary of State for Trade and Industry, on their proposed merger.
The merger was referred to the Competition Commission in March (see ITV Merger Referred To Competition Commission) and the findings of this body will go a long way towards determining whether it is passed by the authorities.
Hewitt could give Carlton and Granada the green light or simply block their plans. However, it is likely that a structural or behavioural solution or a combination of the two will be implemented. It has been suggested that the two companies be allowed to merge on condition that they to divest their sales houses (see Carlton And Granada May Have To Sell Sales Houses) or agree to maintain existing advertising rates.
A decision from the Department of Trade and Industry is expected next week. It is bound to have a significant bearing on the future of the commercial TV market and the attractiveness of ITV to foreign investors.