ITV groups Granada and Carlton Communications have been given the final approval for their proposed £4.5bn merger.

The two groups said the High Court had sanctioned the shareholder schemes of arrangement that will allow the creation of a single company, ITV plc, to go ahead.

The move means shares in the new group will begin trading on the London Stock Exchange on Monday.

Dealings in the ordinary shares of Carlton and Granada ended at close of business yesterday.

Shareholders of both firms gave the go-ahead for the tie-up at meetings in London earlier this month.

Granada and Carlton have said the tie-up will create one of the leading broadcasters in Europe, enabling increased investment in programmes, greater efficiency and lower costs.

They expect to save £100m from the merger and have said it will result in redundancies, although they have not specified numbers.

The two groups, which together employ about 8,500 staff, are planning to integrate certain broadcasting activities to improve efficiency and eliminate duplication of operations.

The merger was plunged into controversy after institutional shareholders blocked the appointment of Carlton chairman Michael Green as chairman of the enlarged group.

At the meeting held by Carlton to approve the deal earlier this month, one shareholder described Mr Green's forced departure as "an utter waste of talent".

Granada chairman Charles Allen is stepping down from his post to become the chief executive of the new company.

In November, Trade and Industry Secretary Patricia Hewitt gave conditional approval for the deal and later accepted undertakings from the two companies designed to satisfy competition concerns.

* Mr Allen, who becomes chairman of the merged ITV plc on Monday, has announced plans to invest £6m in a digital television centre for Tyne Tees Television.

He believes that the operation's headquarters in City Road, Newcastle, are outdated.