SHAREHOLDERS in ITV companies Granada and Carlton Communications have approved a £4.5bn merger that will create a single ITV company.

At a meeting at London's Queen Elizabeth II Conference Centre, 98.48 per cent of Granada shareholders voted in favour of the deal.

Earlier, Carlton shareholders voted by 99.9 per cent to approve the merger, which will take effect on February 2 if the High Court approves arrangements for the deal at the end of this month.

In his opening comments to a packed meeting, Granada chairman Charles Allen said the merger offered "an opportunity to create one of the leading broadcasters in Europe".