Prologis has reached an agreement with the board of Segro on the terms of a recommended takeover offer valuing the UK-listed logistics REIT at more than £14 billion (€16.4 billion).
Under the proposed transaction, Segro shareholders will receive 1,031.7 pence per share, either entirely in Prologis shares or through a combination of shares and cash. Based on the agreed exchange ratio, shareholders will receive 0.0920 Prologis shares for each Segro share held, or may elect to receive 0.0690 Prologis shares plus 258 pence in cash. Segro shareholders will also remain entitled to the company's 2026 interim dividend of up to 10.14 pence per share.
If approved, the merger would create the world's largest listed logistics REIT, with a market capitalisation of around US$138 billion and a combined operational portfolio in Europe totalling approximately 34.2 million sqm. The transaction would significantly strengthen Prologis' footprint across key urban logistics and distribution markets in the UK and continental Europe.
The companies expect the transaction to be put to shareholders during the first half of 2027, subject to the required regulatory and shareholder approvals. Assuming the partial cash alternative is fully elected, existing Segro shareholders would own approximately 8.9% of the combined company. Prologis also intends to seek a listing of its shares on the Main Market of the London Stock Exchange.
According to Prologis, the acquisition would restore its European exposure to levels comparable to those prior to its acquisition of Duke Realty in 2022, while enhancing its presence in high-growth logistics markets. The company also expects the enlarged platform to create additional opportunities for customers and employees through greater scale and an expanded international network.
“We are pleased to have reached an agreement with Segro's Board on a combination that we believe will create significant value”, said Daniel Letter, Chief Executive Officer of Prologis.
“Prologis' proposal offers shareholders an outstanding opportunity to realise the value created by Segro while participating in the future growth of the combined group”, added David Sleath, Chief Executive Officer of Segro.
