Nu Holdings (NYSE:NU) shares fell 5.81% to $12.80 after the Financial Times reported that the Brazil-based fintech is considering acquiring British neobank Monzo at a valuation of up to $13 billion. The deal could be funded with cash and shares, although Nu may instead take a stake, and neither company has confirmed the discussions. The reported valuation would be roughly twice Monzo’s £4.5 billion 2024 valuation. Monzo, advised by Morgan Stanley and Qatalyst, is weighing alternatives including a financing round, an initial public offering and secondary share sales. Investors are concerned that a large transaction could pressure near-term earnings or dilute Nu shareholders, despite analysts’ generally favorable views of its strategic rationale. Nu is the world’s largest neobank by customer count, with annual revenue above $15.7 billion and operations centered in Brazil, Mexico and Colombia.