Key facts
- French industrial landlord Argan and Belgian firm Warehouses De Pauw are planning a merger.
- The combined entity will be valued at approximately $14.8 billion (€13B).
- The all-stock merger is subject to regulatory and shareholder approval.
- The new platform will operate across eight European countries.
- Argan shareholders will receive three WDP shares for each Argan share.
- The merger is expected to generate €10 million ($11.3M) in synergies within 12 months.
- The deal is anticipated to be completed early next year.
French industrial landlord Argan and Belgian firm Warehouses De Pauw (WDP) have announced plans to merge in an all-stock transaction valued at approximately $14.8 billion (€13B). The proposed combination aims to create a significant pan-European logistics platform, integrating Argan's 3.9 million square feet of warehouse space with WDP's approximately 8 million square feet. This strategic move is intended to enhance client services and shareholder value by establishing a unified platform with European scale.
Both companies' boards have approved the merger, which is still contingent on regulatory and shareholder approvals. Argan shareholders are set to receive three WDP shares for every Argan share they hold, valuing each Argan share at €79.22 ($90.16). The merged entity anticipates achieving €10 million ($11.3M) in operational synergies within the first 12 months through debt optimization and increased efficiencies. Argan shares have seen a 14% increase year-to-date, while WDP shares have grown by 1.8% in the same period. The deal is expected to be finalized in early next year.
This announcement follows a week of significant consolidation in the industrial real estate sector. U.K.-based logistics giant Segro accepted a final takeover offer of $18.7 billion (£14B) from Prologis, the world's largest industrial real estate company. Additionally, Brookfield and the Canada Pension Plan Investment Board agreed to a $5.2 billion deal to take LXP Industrial Trust private.