Argan Shares Surge 15% on Merger Agreement with WDP to Create €13 Billion Logistics Giant

Shares of French logistics real estate company Argan (EPA:ARGAN) surged as much as 15% on Friday after it announced a merger agreement with Belgium's Warehouses de Pauw (EBR:WDPP). The deal will combine the two firms to create a logistics property portfolio valued at €13 billion.

Details of the Agreement

Under the terms of the deal, Argan shareholders will receive three WDP shares for every one Argan share they hold, according to a joint company announcement. Additionally, Argan will distribute an exceptional dividend of €11 per share before the transaction is finalized.

The offer values Argan at €68 per share, or €79 per share when including the special dividend. This represents a 21% premium to Argan's undisturbed share price, though it is a 16% discount to the company's net asset value (NAV) as of June 2026.

Strategic Rationale and Financial Impact

The merged entity will have a significant footprint across key European logistics hubs, with its portfolio geographically split between Benelux (47%), France (39%), and Romania (13%). WDP expects the transaction to be 7% accretive to its net asset value, after adjusting for the exceptional dividend payment.

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Looking ahead, WDP is guiding for a 3% accretion to its EPRA earnings per share beginning in 2028. This forecast includes anticipated cost synergies of €10 million and planned asset disposals totaling €250 million. However, the deal will increase WDP's pro-forma loan-to-value (LTV) ratio to 44%, above the sector average of 40%. The company stated it plans to use the disposals to mitigate this higher leverage.

Path to Completion

The merger has received unanimous support from the boards of both companies. It is also backed by significant shareholders, including the founding families of both firms, who have committed 52% of Argan's shares and 19% of WDP's shares to the deal.

The companies expect the transaction to close by the first quarter of 2027, subject to customary shareholder, tax, and regulatory approvals. The merger news was released alongside WDP's first-half 2026 trading update, in which it confirmed its full-year guidance and reported a 5% year-over-year increase in earnings per share.