Nu Holdings Ltd. (NYSE: NU) has publicly denied reports that it is pursuing a transaction with UK-based digital bank Monzo, according to a company statement.

The company said it does not typically comment on specific opportunities but issued the clarification "given the extent of recent media speculation." Nu said it has "a great deal of respect for Monzo" while confirming no deal is being pursued.

Nu stated that it regularly evaluates partnerships, investments, and acquisitions as part of its normal business operations. The company said its capital allocation decisions are based on strategic fit, expected returns relative to its cost of capital, long-term value creation per share, and the resources required to execute its priorities.

The company described its strategic focus as deepening its position in Brazil, expanding its businesses in Mexico and Colombia, and building its presence in the United States and globally through Nu Global. Nu said its capital allocation framework remains unchanged.