Nu Holdings, the parent company of Nubank, has officially denied media reports that it is pursuing a transaction with UK digital bank Monzo.
In a statement filed with investors, Nu Holdings said it was responding to recent media reports about a potential transaction. While the company typically does not comment on specific opportunities, it said the extent of the speculation prompted it to clarify its position.
“While we have a great deal of respect for Monzo, the Company is not pursuing a transaction with Monzo,” Nu Holdings stated.
Earlier this week, reports emerged that Nubank was considering an acquisition of Monzo, potentially valuing the UK fintech at tens of billions of dollars. Nu did not provide further details about whether it had ever held discussions with Monzo.
The holding company, however, said it continues to evaluate opportunities that could support its growth and long-term objectives as part of its normal business activities. These opportunities can include partnerships, investments and acquisitions.
At the same time, its current strategic priorities remain unchanged. Nu is focused on strengthening its position in Brazil, expanding its businesses in Mexico and Colombia, and building its presence in the US and other international markets through its Nu Global business.
The company also said its capital allocation framework remains unchanged. Investment decisions are based on strategic fit, expected returns compared with the company’s cost of capital, long-term value creation per share, and the management and financial resources required to execute its existing priorities.
The clarification came after a sharp, roughly 8% Nubank shares selloff on Monday, when the Monzo talks first surfaced. Many investors were concerned about shareholder dilution or capital strain that might come from a large, non-core European acquisition. Nu Holdings’ shares rose after the company denied acquisition reports. The stock closed at $12.66 on September 30, up 2.51% from the previous session. Following the company’s statement after the market close, NU shares climbed further in after-hours trading, reaching $13.36, up 5.53%.
