As is the case anywhere in the world, the Covid-19 pandemic will reshape the Brazilian economy, with merger and acquisition (M&A) deals likely to become an integral part of the “new normal.” In the big leagues, these operations will demand a more comprehensive approach from Brazilian antitrust watchdog, Cade. Small- and medium-sized firms, however, will be faced with a survival-of-the-fittest situation. Businesses will have to turn to the courts to avoid liquidation — a fate estimated to hit some 2,500 companies — or even declare bankruptcy.
Industrial production fell 9.1 percent in March, while the National Confederation of Industry index measuring business confidence dropped 25.8 points between March and April. Before this, the most significant drop recorded was 5.8 points in June 2018, following the 2018 truckers’ strike.