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When asked by CNBC whether BAT had asked for blu to be sold as a condition for helping financing the merger, Reynolds' Howard said, "I have no insight to that, at all." However, Howard did say that Reynolds and BAT now "have an agreement in principle to pursue an ongoing technology-sharing initiative for the development and commercialization of next-generation tobacco products, including electronic cigarettes." Read More Selling blu to Imperial also may have been aimed at easing antitrust concerns for the larger deal

E-cigarettes are clearly working in terms of helping people stop smoking far more than anything weve seen so far

They felt messages that recognised them as whole people would create greater empathy and do more to encourage them to quit," she said in a statement

Their products meet Cigarettes pressing demand for audiophile quality systems that can withstand the rigors of the wind, sea and open cockpits

Expansion of retail infrastructure supports product availability