Brazilian fintech Nubank has denied it is in active takeover talks with UK digital bank Monzo, following speculation that caused a drop in its share price. The Latin American company confirmed on Wednesday night that it is "not pursuing a transaction with Monzo", although it stated it has a "great deal of respect" for the UK fintech.
Nubank's shares rose six per cent in after-hours trading after the announcement, recovering some of the declines seen earlier in the week. The company, which is listed on the New York Stock Exchange, had experienced an eight per cent drop in its share price on Monday morning due to reports of potential talks.
The Brazilian firm stated it remains focused on its strategic priorities in the Americas, including deepening its position in Brazil, scaling in Mexico and Colombia, and building its presence in the US. The denial of a deal could potentially reignite hopes for Monzo to pursue a public listing in London.