Britain's Imperial Tobacco said its current year trading remained in line with its own expectations helped by cigarette market share gains in its two key markets of the UK and Germany.
The world's fourth-biggest cigarette firm agreed in July to buy Franco-Spanish rival Altadis for €12.6 billion.
Imperial said it is now awaiting approval by the Spanish regulator CNMV, which it expects in the next few weeks, and hopes to complete the deal by the end of 2007.
The company, which makes Britain's two top-selling cigarette brands Lambert & Butler and Richmond, said it grew its cigarette volumes and profit margins in its second half (April-September) helped by strong performances from Davidoff, West and JPS.
The group, which makes nearly 60 per cent of its profits from its two core markets of UK and Germany, was making a trading statement towards the end of its financial year on Sept. 30, and ahead of its full-year results on October 30.
Imperial said bans on smoking in public places in England, Wales and Northern Ireland in the past six months resulted in an initial fall in cigarette market volumes, but the group expects this impact to diminish over time, reflecting the trend it has seen in other markets hit by smoking bans.
In Germany, Imperial said it grew market share although the overall market declined due to increased cross-border flows.
The group last gave its UK cigarette market share at 46.4 per cent for its first half to end-March 2007, and in Germany at 21.2 per cent. Imperial shares were up 0.3 per cent at £22.16 by 0825 GMT in a sharply higher London market.
They have outperformed the FTSE 100 by 9 per cent this year, but underperformed rival British American Tobacco Plc by 6 per cent.