Tobacco manufacturer Imperial Tobacco has acquired the worldwide Davidoff cigarette trademark from German group Tchibo for E540m (£366m) in cash.

Gareth Davis, chief executive of Imperial Tobacco, said: "This acquisition provides greater flexibility to develop the brand, enabling us to increase investment and accelerate its international growth."

He added: "Additionally, given the global growth potential of the brand and the likelihood of significant increases in future royalty rates, acquiring the cigarette trademark at this time will ensure that we maximise value for the long term benefit of our shareholders."