The US government may try to block RJ Reynolds Tobacco Holdings proposed $3 billion acquisition of Brown & Williamson Tobacco, after antitrust enforcers concluded the combination would stifle competition, analysts said.

British American Tobacco showed the impact of the strong pound on its British business today after profits for the first three months of the year slipped 3% to £454m (€381m).

Alleged collusion with smugglers will end up costing Philip Morris International a billion dollars (€827m) if the company's payoff offer is accepted by the European Union.

British American Tobacco and RJ Reynolds Tobacco have agreed to merge their US tobacco businesses, uniting the nation’s second and third largest tobacco companies in an effort to blunt the attacks of sagging sales and cheaper brands.

The European Union is suing US tobacco giant RJ Reynolds seeking compensation for alleged money laundering.

RJ Reynolds Tobacco has been fined almost $15m (€16.5m) for illegally handing out free packets of cigarettes at events attended by children.

Lawyers are taking America’s three biggest tobacco companies to court over claims they used words such as ‘‘light’’ and ‘‘low tar’’ to deceive smokers into believing some cigarettes are safer than others.

The EU, despite a court setback, is not giving up its fight against tobacco giants it claims sponsored cigarette smuggling in Europe.

A lawyer in a multimillion-dollar case against the US tobacco industry has said that cigarette makers deceive the public to protect profits.