THE proposed merger of struggling TV companies Granada and Carlton could pave the way for a single ITV company, it emerged yesterday.

But North-East industry analysts say Tyne Tees and Yorkshire Television, which both belong to Granada, will not be affected by the news.

The new company would be 68 per cent owned by Granada shareholders and 32 per cent owned by Carlton shareholders. However, the move, which experts say has been on the cards for months, could still be scuppered by Government rules on competition.

Vinay Bedi, a director at Newcastle analysts Wise Speke, said: "It's no great secret that both companies have been struggling.

"Advertising revenues have been down heavily and they have struggled in the face of new media and satellite TV.

"I think it needed to happen and, as I understand it, the only delay was getting top executives to agree to their new roles. Tyne Tees and Yorkshire Television won't be affected by this merger. This is not a regional issue. It is about being a national and an international player. ITV wants to speak with one voice."

Executives at Tyne Tees welcomed the news. A spokeswoman said: "We have always said that one ITV would allow us the benefit of giving viewers what they want, both regionally and nationally."

Granada makes programmes such as Coronation Street, Emmerdale, A Touch of Frost, Stars in Their Eyes and Heartbeat.

Company chairman Charles Allen said: "The proposed merger provides a clear route to a consolidated ITV. It would make ITV more competitive in an increasingly competitive market.

"For viewers it means we can continue to put money into programmes on screen. For advertisers, it ensures ITV can go on attracting the mass audiences they want."

Industry analysts have sounded a note of caution amid the congratulations. Graham Lovelace, media consultant for Lovelacemedia, listed a couple of potential obstacles.

He said: "First, the Government's communications Bill, which lifts restrictions preventing a single-company ITV. It could take more than a year to become law.

"Then there's the concern that the merger could be blocked on competition grounds. A single-company ITV would control more than 50 per cent of TV advertising in the UK and advertiser agencies have been lobbying against consolidation of ITV's separate sales houses."