Chile: BAT to cease operations

British American Tobacco (BAT) has announced the closing of its operations in Chile due to changes in tobacco regulations in the country, according to a report in ABC News.

The move is said to be in response to new restrictions and requirements on cigarette companies in the country, including the banning of additives such as menthol and larger warning messages on packaging.

The company commented on its decision by saying: “We deeply regret what has been approved by the Senate, a decision that will affect thousands of Chileans who were working legally and responsibly for more than 100 years", adding that the new law would affect a "significant number of farmers and workers" who operated in the country’s tobacco industry.

The move is expected to cost the company around $400 million, BAT said.

Source: ABC News