Nubank rules out multi-billion pound tie-up with Monzo

(Sharecast News) - Brazil's Nubank has ruled out a possible tie-up with fellow digital bank Monzo, ending days of speculation about a potential multi-billion pound deal.

In a brief statement posted after the London market had closed on Wednesday, parent company Nu Holdings said it normally did not comment on "specific opportunities".

But it continued: "Given the extent of recent media speculation, the company is providing this clarification: while we have a great deal of respect for Monzo, the company is not pursuing a transaction with Monzo."

Reports over the weekend said Nubank was in early-stage talks with the British challenger about a potential tie-up, which would value Monzo at between £8bn and £10bn.

The London-based business, which was founded in 2015, was last valued at £4.5bn in 2024, when investors including Singapore sovereign wealth fund GIC took part in an employee share sale. In the year to 31 March, revenues rose 39% to £1.7bn while adjusted pre-tax profits were 20% stronger at £172.6m.

Sao Paula-based Nubank, which has a market capitalisation of around $65.5bn, said: "Nu regularly evaluates opportunities that could support its growth and long-term objectives, including partnerships, investments and acquisitions.

"Nu is highly confident and focused on its strategic priorities: deepening its position in Brazil, scaling its business in Mexico and Columbia and building a presence in the US and around the world through Nu Global."

As at 0915 BST, Nubank's New York-listed shares - which had come under pressure in recent days - were up 4% in pre-market trading.

Monzo has so far not commented.