Due to statements by US officials on the possible ban on menthol cigarettes, the share of tobacco companies collapsed. Stronger than others fell British American Paper Tobacco – immediately fell in price by 11%.
This led to the fact that the market capitalization of the company immediately fell by 10.8 billion dollars. The price of shares of other tobacco companies dropped significantly. In particular, Imperial Brands plc dropped by 5% and Altria Group – by 4.13%.
It is expected that the ban will most likely hit British American Tobacco, selling cigarettes of menthol that provide 40% of total sales in the US market.
Earlier, representatives of the Food and Drug Administration (FDA) announced the possibility of banning cigarette menthol. The 2017 ban was introduced to their application in Canada. In the European Union, it will come into force in 2020, writes RBC.
In the United States, about 20 million smokers use menthol cigarettes. According to the FDA, they are most popular among Afro-Americans – 84% of blacks prefer cigarettes with this taste.