N26’s plans to enter the stock market have hit a snag, with the German neobank ending negotiations with Dutch securities trader Bux, according to anonymous sources cited by German newspaper Handelsblatt.
The deal would have allowed N26 customers to trade stocks and index funds, a goal the smartphone bank announced in October 2022. However, the talks broke down over disagreements regarding the management structure, price, and complexity of the deal.
Valued at €100 million, Bux serves over 1 million customers across eight markets in Europe, including the Netherlands, France, and Germany.
Failed Acquisition Efforts
The news comes as a setback for N26, which has been actively seeking to expand its services and build a foothold in the traditional stock and ETF business.
In October 2022, co-founder and co-CEO Valentin Stalf announced plans to enter the space within two years. However, the failed acquisition of Bux puts the company’s plans in jeopardy, leaving N26 to explore other avenues for growth.
Bux declined to comment on the matter, saying that it looks for interesting companies that fit its strategic goals but does not generally comment on rumors or speculation.
Bux is known for its cooperation with Dutch bank ABN Amro on trading systems and operates in a total of eight markets.
Its services include commission-free trading in stocks, ETFs, and other financial instruments.
N26 has been actively expanding its offerings, partnering with Vienna-based crypto startup Bitpanda in the fall of 2022 to allow customers to trade cryptocurrencies. While N26’s efforts to enter the traditional stock and ETF business have hit a roadblock, the bank’s cooperation with Bitpanda may pave the way for future partnerships and collaborations.
The failed acquisition 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 offerings and building partnerships to drive growth.
With the rise of digital currencies and the growing popularity of cryptocurrencies, N26’s cooperation with Bitpanda is a step in the right direction, as the bank seeks to stay ahead of the curve and meet the evolving needs of its customers.