Merger creates TV giant

The country's largest privately owned independent television production company will be unveiled today, with the news that Barraclough Carey and Mentorn Films are merging.

The two companies, which between them produce about 600 hours of television a year, are responsible for Challenge Anneka, Carlton's Capital Woman, and the Gerry Anderson programme Space Precinct. They also make about 1,500 hours of radio programming.

Barraclough Carey, jointly run by George Carey and Jenny Barraclough, the former head of BBC Documentaries, specialises in factual programming. Mentorn, run by Tom Gutteridge, has concentrated on entertainment.

"The two companies are an excellent fit," Mr Carey said yesterday. "In the independent television sector, you have to be careful about becoming too specialised, and this deal gives us a good deal of depth of resources and talent."

Mr Gutteridge will be the majority owner of the company, and will assume the role of chief executive. A stock-market listing could come within two years. The merger was seen in media circles as a confirmation that a new round of consolidation has started. For several years, the independent sector has been awash with rumours of buyouts and mergers, with the big production companies like Thames, Granada and Carlton favoured as bidders.

"It is clear that there will be fewer independents within a year or two," Mr Gutteridge said. The prospect of 200 channels to fill will mean that companies will have to be big enough and diverse enough to meet the demand.