Granada Media, the UK television group, is to expand its business overseas after seizing the dominant position in the domestic independent television network.

Mr Charles Allen, Granada chairman, said the company was seeking joint ventures and partnerships with other television groups in continental Europe after striking a £1.75 billion deal to buy the ITV assets of one of its two big rivals, United News & Media.

The deal puts Granada in the driving seat for the ownership of ITV, leaving its other main rival, Carlton Communications, as the junior player.

Granada will not only control the bulk of ITV's advertising revenues, but will also be the dominant supplier of programming. Mr Allen said: "This deal increases our national footprint, strengthens our offering to advertisers and allows us to play a leading role in ITV.

"We'll have a wider range of programme genres to offer and an expanded international production and distribution business.

"It will drive the development of ITV and ONdigital and boost our broadband capacity."

Granada added that United's strengths in children's, animation and wildlife programmes would complement its own strengths in drama, soap and entertainment and factual genres.

The company expects the merged business to generate cost savings of around £30 million in 2002.

The combined group will produce some of the UK's most popular programmes including Coronation Street, London's Burning, Emmerdale and chat show Trisha.

Media experts said the sector may see further jostling for position as companies endeavoured not to be the next target for the bigger predators.

Yesterday's deal could be the start of a process that could leave the whole ITV network in the hands of one group within four to five years.