Business

Brazil’s post-pandemic economy: a dog-eat-dog world

A survival-of-the-fittest scenario may be on the cards for companies once the coronavirus crisis passes

Brazil's post-pandemic economy a dog-eat-dog world
Photo: Latitude Images/Shutterstock

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...

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