Nubank has said it is "not pursuing a transaction" with Monzo, ending speculation over a deal reported at up to £10bn. The statement followed an 8 per cent fall in the $60bn Brazilian lender's shares and sent them up 6 per cent in after-hours trading.
Monzo is one of the UK's largest digital banks and has long been viewed as a leading candidate for a stock market listing. In May 2025 it was reported to be lining up bankers for a flotation that could value it at about £6bn.
That plan was overtaken last weekend by reports that the London-headquartered bank was in early discussions over a sale to Nubank at a valuation of up to £10bn. A deal at that level would have priced Monzo well above the figure attached to its mooted float.
Nubank closed the door on Wednesday night. The New York-listed group said that, while it does not normally comment on specific transactions, it was not pursuing one with Monzo. It added that it has a "great deal of respect" for the British bank and routinely assesses partnerships, investments and acquisitions.
The market reaction
Nubank's own shareholders had made their view clear. The stock dropped about 8 per cent on Monday morning after the weekend reports, a sharp move for a company with a market capitalisation of roughly $60bn.
The shares recovered about 6 per cent in after-hours trading once the statement was published, clawing back part of the week's losses.
An acquisition would have given Nubank a banking presence in a new market and set it against Revolut in Europe. Nubank holds licences across the Americas but has a limited European footprint, centred on a technology and engineering base in Berlin.
In its statement the group said its priorities remain deepening its position in Brazil, scaling in Mexico and Colombia, and building a presence in the US. Both Nubank and Revolut received conditional approval for a US banking licence this year.
What it means for Monzo's cap table
No price was agreed and no formal offer was disclosed. Monzo's shareholders are therefore left without the exit route that had been reported, and with a public reference point of up to £10bn that was never tested.
The withdrawal puts a London listing back in focus. The bank's board and investors have been understood to favour London as the venue, although there has been speculation that chief executive TS Anil leaned towards New York.
Governance has been unsettled. Anil said in October 2025 that he would step aside for former Google executive Diana Layfield, before later returning to the role. It subsequently emerged that he and the board had disagreed over the timing of a listing, with Anil pressing for an earlier schedule.
Chair Gary Hoffman confirmed last month that he intends to step down, more than a year before his nine-year term would have required it.
What's next
Monzo has not set out a timetable for a float. The listings pipeline is moving regardless: payments firm Zilch this week invited banks to pitch for roles on a flotation that could be worth up to $2bn.
Whether Monzo's investors can achieve in the public markets the valuation that was discussed privately is now the central question for its shareholder register.
Original source: City AM — https://www.cityam.com/nubank-denies-active-monzo-takeover-talks-after-shares-plunge/
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