Prologis Proposes £14 Billion Takeover of UK Logistics Rival Segro

U.S. logistics real estate firm Prologis has submitted a last-minute takeover proposal for its UK-based rival Segro, valuing the company at approximately £14 billion ($18.8 billion). The offer, made Wednesday ahead of a takeover deadline, would combine two of the world's largest owners of warehouses and distribution centers.

Details of the Offer

The proposal values each Segro share at 1,031.7 pence, according to a report from Reuters. The terms of the non-binding offer consist of a mix of stock and cash.

• Stock Component: 0.0920 of a Prologis share for each Segro share.
• Cash Component: A partial cash alternative is available, capped at a total of £3.5 billion.

This move follows recent engagement between the two companies. A Segro spokesperson told Reuters just before the new bid was announced that the firm had met with Prologis over the weekend and was prepared to "consider and engage again on a revised proposal."

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Market Reaction

Investors reacted positively to the news of a potential deal. Following the announcement, shares in Segro rose nearly 4% to trade at 901.2 pence as of 0916 GMT on Wednesday.

A successful acquisition would significantly expand Prologis's footprint in the UK and continental Europe, where Segro has a substantial portfolio of high-quality logistics assets. The potential merger underscores the ongoing consolidation within the global logistics real estate sector, which continues to benefit from the growth of e-commerce and the need for resilient supply chains.