United and Carlton call off merger

Carlton Communications and United News & Media have cancelled their proposed merger.

But one of the Competition Commission's stipulations for the merger to go ahead was that United must sell its prized Meridian ITV franchise in the south of England. This condition, United and Carlton said in a statement, "undermined the merger's rationale and significantly reduces benefits to shareholders".

Initially, after winning approval for the merger, United chairman Lord Hollick released a statement implying that United would be prepared to sell Meridian. The failure of the merger now leaves the way open for rival Granada to seek a merger deal with either United or Carlton.

As the government has also ruled that a merged company may only own one London licence, a merger between Carlton and Granada seems unlikely as they both own London franchises.

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

AOL UK launches campaign to consolidate offering

AOL UK launches campaign to consolidate offering

AOL UK has launched a digital and outdoor campaign today, in a bid to bring together its various offerings.

Share
Omnicom finance chief Weisenburger steps down after 16 years

Omnicom finance chief Weisenburger steps down after 16 years

Omnicom Group's executive vice-president and chief financial officer, Randall Weisenburger, has stepped down after 16 years to return to private equity.

Share
Instagram partners with Omnicom to launch ad service in the UK

Instagram partners with Omnicom to launch ad service in the UK

Instagram, the photo-sharing app acquired by Facebook in 2012, has launched its much-anticipated advertising service in the UK today through an initial partnership with Omnicom Media Group.

Share

Get news by email