Following new regulations in Brazil that forbid the use of “bank” in a brand name unless the company holds a banking license, Nu Holdings (NU) is looking to acquire a small bank that already has a license in Brazil, Matheus Piovesana of Bloomberg reports, citing a person familiar with the matter. Buying a bank that has accumulated losses would offer added tax benefits, the source told Bloomberg. Nu is reviewing candidates, including Banco Digimais, according to the person. Shares of Nu Holdings, which operates Nubank, are up 21c to $16.91 in late morning trading.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on NU:
- Mixed options sentiment in Nu Holdings with shares up 1.46%
- Nu Holdings’ Strategic Banking License Moves and Strong Financial Health Justify Buy Rating
- Nu Holdings price target raised to $18.40 from $16 at UBS
- Nu Holdings upgraded to Outperform from Neutral at Grupo Santander
- Option traders moderately bearish in Nu Holdings with shares down 0.31%