Merrill Lynch has underscored its credentials as the leading advisory bank to the tobacco industry after working with Spain's Altadis on its takeover by the UK's Imperial Tobacco for €15.4bn ($21bn), which is on course to become the largest takeover in the sector.

Merrill Lynch has advised on almost every big tobacco industry merger since 1999, most recently working as an adviser last December to Japan Tobacco on its €14.5bn purchase of UK cigarette producer Gallaher Group.