Nubank, the Brazilian digital bank listed on the New York Stock Exchange as Nu Holdings, is in talks to buy UK digital bank Monzo, according to Sky News, which first reported the discussions on Friday, September 25, 2026. Bloomberg News followed with its own account, citing people familiar with the matter who asked not to be identified, and said a deal could value Monzo at about £8 billion ($10.6 billion) to £10 billion. City AM reported on Saturday, September 26, that the discussions were at an early stage.
Nothing has been signed or announced, and the reporting rests on unnamed sources. City AM reported that Nu Holdings had approached Monzo. Neither company has confirmed the talks. Monzo declined to comment. A Nubank spokesperson said: “Nubank does not comment on rumours or speculation. We reaffirm our commitment to maintaining open, clear, and timely communication regarding all significant business matters.”
A price about twice Monzo’s last valuation
Monzo was valued at £4.5 billion in October 2024, after an employee secondary share sale, City AM reported. The range now under discussion is 1.8 to 2.2 times that mark. In May 2025, Monzo was reported to be lining up banks for a potential £6 billion IPO. Sky News reported that a deal would likely combine cash and shares. Monzo posted £1.7 billion in revenue for its 2026 fiscal year, while deposits rose 55% to £25.7 billion, according to Bloomberg News.
Monzo lines up advisers and keeps other options open
Monzo has hired Morgan Stanley and the law firm Slaughter and May to help explore a deal with Nubank, one of the people told Bloomberg News. Qatalyst is also advising on the talks, according to Sky News, and City AM names it alongside Morgan Stanley. Monzo is weighing alternatives as well, Sky News reported, including a new funding round that would pay for expansion across Europe. Monzo’s chief financial officer, Tom Oldham, previously worked at Nubank as global head of financial planning and analysis, Bloomberg News noted.
A UK banking license and a foothold in Europe
Nubank counts 135 million customers in Latin America, holds licenses across the Americas, and is now working to expand in the US. Bloomberg News reported that it currently has no presence in the UK or Europe. City AM describes a limited European footprint, whose main operation is a large technology and engineering facility in Berlin. A Monzo deal could give Nubank a UK banking license and access to 16 million retail and business customers across Britain.
Monzo is itself turning toward continental Europe. Earlier this year, it dropped its US expansion and said it would close its operations there, refocusing on the UK and Europe, with Spain and Ireland expected to come first. The US exit was among the first major strategy changes under chief executive Diana Layfield, who took over in February. A deal would also set Nubank against Revolut on its rival’s home continent. Revolut, which counts 80 million users worldwide, has pushed into Latin and North America over the past year and recently won a US banking license.
A setback for London’s IPO market
A sale would stand in for the stock market listing Monzo had been exploring. Its board and investors had viewed London as the likely venue, City AM reported, though there was speculation that former chief executive TS Anil leaned toward New York. Anil, who wanted to list sooner than the board did, said in October 2025 he would step down, and later returned to the board as vice-chair. Bloomberg News described a sale to Nubank as a fresh blow to the London Stock Exchange, which has watched companies list elsewhere, go private, or move existing listings to the US. Rival Wise moved its primary listing from London to the US earlier this year.
A sale would also give Monzo’s backers a way to cash out. Alongside an IPO, the company had been exploring further secondary share sales to help return money to investors, many of them venture capital firms, Sky News reported. A sale at £8 billion to £10 billion would offer those investors an exit without waiting for a listing, at roughly twice the price set in the October 2024 share sale. If the deal combines cash and shares, as Sky News reported it likely would, part of the payment would come in Nu Holdings stock, leaving some of the return tied to Nubank’s share price.
The Prudential Regulation Authority would have to sign off
Any agreement would need regulatory clearance before it closes. Under the Financial Services and Markets Act, a buyer that decides to acquire or increase control of a firm authorized jointly by the Prudential Regulation Authority and the Financial Conduct Authority, as UK banks are, must obtain the PRA’s approval first. Acquiring control without it is a criminal offense under section 191F. The PRA has 60 working days from acknowledging a complete notification to approve the deal outright, propose approval with conditions, or propose to object, and it can stop the clock while it seeks further information. The FCA may make representations, and under section 187A it can require the PRA to object or impose conditions on money laundering or terrorist financing grounds.