Nu Holdings Ltd. (NYSE:NU), the parent company of Nubank, rebounded Tuesday after falling Monday on reports that it is considering an acquisition of British digital bank Monzo. Nu shares were up 1.06% at $12.36 at publication, outperforming the Financials sector by 2.36 percentage points as the sector fell 0.60%. The Financial Times reported that a transaction could be Nu’s largest purchase and carry a price tag of up to $13 billion, funded through a combination of cash and newly issued shares. Nu could instead pursue a partial ownership stake, and neither company has publicly confirmed the discussions. Earlier reports cited a valuation of £8 billion to £10 billion, while another estimate placed the potential value at up to $13.5 billion. Investors have focused on the possibility that a price well above Monzo’s £4.5 billion 2024 valuation could pressure Nu’s near-term earnings or dilute existing shareholders. The potential deal could give Nu access to Monzo’s roughly 15.2 million customers, £25.7 billion in deposits and £1.7 billion in revenue, while expanding its European lending platform. Monzo had £2.3 billion of loans against £25.7 billion of deposits, compared with Nu’s loan-to-deposit ratio of about 87%. The discussions come as Nu reports record profitability, while credit performance, international expansion and deal uncertainty remain key considerations.