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Imperial in £1bn swoop on discount US tobacco firm 

Imperial Tobacco surprised the market yesterday with a $1.9bn (£970m) acquisition of a US discount cigarette maker in a move that catapulted it into the No 4 position in the country.

The maker of Lambert & Butler and Richmond cigarettes announced an agreed deal to acquire Commonwealth Brands, the maker of USA Gold and Sonoma, from Houchens Industries.

Analysts said the acquisition made good financial sense, but Imperial's shares fell 3 per cent as investors noted that it makes a tie-up with a larger player far less likely.

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