N26’s plans to go public have hit an obstacle: the German neobank has broken off negotiations with Dutch securities dealer Bux, according to an anonymous source cited by Handelsblatt.
The deal would have allowed N26 customers to trade stocks and index funds, a goal the smartphone bank announced in October 2022. However, talks failed due to disagreements over the management structure, price and complexity of the deal.
Valued at €100 million, Bux serves over 1 million customers in eight markets across Europe, including the Netherlands, France and Germany.
Failed acquisition efforts
The news is a setback for N26, as the company is actively trying to expand its offering and gain a foothold in the traditional stock and ETF business.
In October 2022, co-founder and co-CEO Valentin Stalf announced plans to enter the market within two years. However, the failed acquisition of Bux puts the company’s plans at risk, so N26 must now explore other growth opportunities.
Bux’s answer
Bux declined to comment on the matter, saying that the company is looking for interesting companies that fit its strategic goals, but does not comment on rumors or speculation.
Bux is known for its cooperation with the Dutch bank ABN Amro in the field of trading systems and is active in a total of eight markets.
Its services include commission-free trading in stocks, ETFs and other financial instruments.
Crypto cooperation
N26 has been actively expanding its offerings and partnered with Vienna-based crypto startup Bitpanda in fall 2022 to enable customers to trade cryptocurrencies. While N26’s efforts to enter the traditional stock and ETF business have hit a roadblock, the bank’s collaboration with Bitpanda could pave the way for future partnerships and collaborations.
The failed takeover of Bux is a setback for N26’s plans to enter the traditional stock and ETF business. However, the neobank remains committed to expanding its offering and building partnerships to drive growth.
Given the rise of digital currencies and the growing popularity of cryptocurrencies, N26’s collaboration with Bitpanda is a step in the right direction as the bank strives to stay one step ahead and meet the evolving needs of its customers.
