The creator of Peaky Blinders is in advanced talks to merge with the producer of The Traitors Television industry

The world’s largest independent TV production group, which is behind shows ranging from Peaky Blinders to Big Brother, is in talks to merge with the UK-based maker of hit TV shows including The Traitors.

Paris-based Banjay Group, which last year considered a takeover bid to operate the ITV studio, is in advanced talks with All3Media, owned by RedBird IMI, the Abu Dhabi-backed company that is trying to offload Telegraph titles to the Daily Mail owner.

The merger will create a European TV production giant, combining Banijay hits such as Survivor, Pointless, Haunted and Location, Location, Location with All3Media staples such as Midsomer Murders, Call the Midwife, Great British Menu and Race Across the World.

“The company confirms that it has entered into discussions with the owner of All3Media regarding a potential merger between Banjay and All3Media,” Banjay Group said in a statement.

“At this stage, the company wishes to stress that no decision has been made and there can be no assurance that the transaction will be completed. Further announcements will be made if and when appropriate.”

Reuters first reported news of the talks, citing a source who claims that any deal was expected to include All3Media pumping money into the combined entity because it was the smaller of the two companies.

If an agreement is reached, the scale of the merger is likely to mean it will come under scrutiny by the UK’s competition watchdog, as well as its counterpart in Europe, where it has a significant share in markets such as France and Italy.

Banijay was founded in 2008 and merged seven years later with Zodiak, owner of UK producers including Faking It RDF manufacturer.

It struck a $2.2bn (£1.6bn) deal in 2019 to buy Endemol Shine Group, maker of shows including MasterChef, Big Brother and Black Mirror, to create the biggest TV producer outside the US. The group’s portfolio includes more than 130 television production and creative companies in more than 25 regions.

All3Media has 50 different brands and has produced some of the most popular shows in recent years. They include Squid: the Challenge, Fleabag, and Shameless.

There were reports last year that ITV and RedBird IMI were in talks to merge ITV Studios with All3Media.

The move has prompted Banijay to explore a takeover bid for ITV Studios, maker of shows including Love Island, I’m a Celebrity and hit drama Mr Bates vs The Post Office, although no formal bid has been made.

In November, Comcast, Sky’s parent company, entered talks to buy ITV’s broadcasting business for about £1.6bn.

Banijay made headlines last summer when her investigation into BBC One’s MasterChef upheld 45 allegations against host Greg Wallace, including allegations of inappropriate sexual language and an incident of unwelcome physical contact, and one against co-presenter John Torode of using racist language. Wallace was dropped from the show due to the allegations and Torode’s contract was not renewed.