Prologis (NYSE:PLD) has agreed a recommended takeover of Segro (LSE:SGRO), valuing the UK's largest listed warehouse and logistics landlord at approximately £14 billion.
Segro shareholders will receive 0.0920 new Prologis shares for each Segro share held, with the option to take up to 25% of the consideration in cash, capped at a maximum aggregate cash amount of roughly £3.5 billion.
The combination values each Segro share at 1,031.7p, a premium of 39% to Segro's closing price before the offer period began and 14.4% above its EPRA net tangible asset value of 902p as at 30 June.
Including Segro's expected 2026 final dividend of up to 22.56p per share, the total value rises to 1,054.3p per share, a premium of 42.1% to the undisturbed price.
Segro shareholders will end up owning approximately 8.9% of the combined group, which would become the world's largest logistics real estate investment trust with a $138 billion market capitalisation and a combined European portfolio of approximately 368 million square feet, more than tripling Segro's existing footprint.
The deal also unites Segro's 1.4 gigawatt data centre pipeline with Prologis' 5.8 gigawatt secured pipeline.
"This deal brings together Segro's exceptional portfolio and customer relationships with Prologis' global platform, operating expertise and financial strength", said Prologis chief executive Daniel S. Letter.
Segro's board intends to recommend the deal unanimously, with directors holding 0.245% of shares having given irrevocable undertakings to vote in favour.
The transaction, structured as a scheme of arrangement, requires shareholder and regulatory approval and is expected to complete in the first half of 2027.
News Intelligence what this means for the company
Prologis has secured Segro's board agreement to a £14 billion all-share takeover at 1,031.7p per share—a 39% premium to Segro's pre-bid close and 14.4% above its June net tangible asset value—with a partial cash option capped at £3.5 billion. The deal, expected to close in H1 2027 subject to shareholder and regulatory approval, creates a $138 billion combined REIT and unites Segro's 1.4 GW data centre pipeline with Prologis's 5.8 GW secured pipeline, tripling Segro's European logistics footprint to 368 million square feet. This caps a month-long negotiation in which Prologis raised its offer three times after Segro's board rejected earlier approaches as undervalued.
For Prologis shareholders, the deal adds a scaled European logistics platform and data centre exposure at a price that values Segro at a material premium to its tangible asset base, diluting Prologis ownership by ~8.9% but expanding its global footprint and pipeline. For Segro shareholders, the offer represents a locked-in exit at a significant premium after the board rejected lower bids, though completion risk remains until H1 2027 and regulatory clearance.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
