Might the tobacco industry's big looming deal be in trouble? Business news website StreetInsider.com, citing "a person claiming to have knowledge of the matter," says that British American Tobacco's (NYSEMKT: BTI) proposed acquisition of peer Reynolds American (NYSE: RAI) has "hit a snag." The reason or reasons for the hiccup were not specified.

Neither British American Tobacco nor Reynolds American have commented on the report.

Last October, British American Tobacco offered $47 billion in cash and stock to buy the part of Reynolds American that it does not already own. (At the time, it held just over 42% of the company.) The latter company said it formed a special committee of directors to evaluate the proposal.

The offer was worth $56.50 per Reynolds American share, a premium of around 20% to the stock's price when the bid was made public. The shares most recently closed at $55.44, indicating a bit of skepticism remains that the deal will be consummated at the offer price.

Reynolds American is no stranger to the acquisition game. It took over Lorillard -- maker of the Newport and Kent brands, among others -- in a $25 billion deal that was completed shortly before British American Tobacco made its pitch.

British American Tobacco -- owner of well-established brands such as Lucky Strike and Dunhill -- has said that fully owning Reynolds American "would create a stronger, truly global tobacco and Next Generation Products company."

The combined entity would be the top cigarette producer in the world in terms of revenue and market capitalization.

10 stocks we like better than Reynolds American
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Reynolds American wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of January 4, 2017

Eric Volkman has no position in any stocks mentioned.

Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.