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Segro has agreed to be acquired by U.S.-based logistics real estate company Prologis in a deal valued at up to USD 19.19 billion after investor pressure encouraged both companies to engage in discussions. The agreement follows multiple earlier proposals that Segro had rejected before indicating its willingness to consider a final offer. The transaction will combine two major warehouse owners with expanding data centre ambitions linked to AI demand. The deal is among the UK's biggest corporate transactions this year and includes a mix of Prologis shares, a cash alternative, a potential dividend, and plans for a possible London listing of the combined business.
British warehouse developer and logistics real estate company Segro has agreed to a takeover by U.S.-based Prologis in a deal valued at up to GBP 14.3 billion, or around USD 19.19 billion. The agreement came after investors encouraged both companies to hold discussions, marking one of the UK's largest corporate transactions announced this year.
The acquisition is the second-largest UK deal announced this year, following Unilever's USD 65 billion merger involving its food business. In early trading following the announcement, Segro's shares rose around 1%, although they continued to trade below the agreed takeover value of up to GBP 10.54 per share.
Segro, which owns approximately 10.9 million square metres of logistics and warehouse space across Europe, had rejected three previous takeover proposals from Prologis. However, the company had indicated in the past week that it was prepared to support what it described as the best and final proposal if a formal offer was submitted before the previously announced August 12 deadline.
In a joint statement, the companies said the proposed combination would provide Segro shareholders with an opportunity to become shareholders in the world's largest logistics real estate investment trust (REIT), which would have a market capitalisation of around USD 138 billion after the merger.
The deal also brings together two companies that have been expanding their data centre pipelines to benefit from rising demand driven by artificial intelligence. Alongside their core logistics property portfolios, both companies have increasingly explored opportunities in digital infrastructure as demand for data centres continues to grow globally.
The agreed offer includes 0.0920 Prologis shares for each Segro share, a partial cash alternative of up to GBP 3.5 billion, and a potential dividend. The companies also said they would consider a secondary London listing for the combined entity following completion of the transaction.
The agreement follows calls from major shareholders, including APG Asset Management, Norges Bank and CCLA Investment Management, which had urged both companies to engage in discussions, saying a combination could create value for shareholders.
The transaction remains subject to customary approvals and completion processes. Evercore, Morgan Stanley, Goldman Sachs and UBS acted as advisers to Segro, while Rothschild, J.P. Morgan, Eastdil Secured, Citigroup and BofA Securities advised Prologis.
Source Reuters
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