On October 1, Nu Holdings Ltd. rose 3.2% in regular trading, trading at $12.75 per share, with turnover of $9.73 billion. The stock exhibited a technical recovery pattern following a roughly 10% single-day plunge in the prior session triggered by reports that the company is in preliminary talks to acquire UK digital bank Monzo.

On the news front, multiple media outlets reported that Nu Holdings is in early-stage discussions to acquire Monzo in a deal that could value the British digital lender at between £8 billion and £10 billion. The broad terms of the potential transaction remain under negotiation. Monzo has reportedly engaged Morgan Stanley and law firm Slaughter & May as advisors. An alternative path being explored by Monzo is a new funding round expected to value the bank at more than £8 billion, with proceeds earmarked for European expansion. Neither party has officially commented on the reports.

Nu Holdings currently has no substantive core operations in the UK or continental Europe, making the potential deal a significant strategic move to enter the European market. The company recently launched US operations with a full suite of financial products and reported record Q2 net income of $1.06 billion, beating analyst expectations.

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