Key facts
- Prologis has made a final preliminary offer to acquire Segro for more than $18.7 billion.
- Segro's board of directors recommended shareholders consider the offer.
- The proposed acquisition is one of the largest mergers in the industrial REIT sector.
- Prologis' acquisition of Segro would add 117 million square feet of European industrial and data center space valued at $29.3 billion.
- Segro extended the deadline for Prologis' formal offer to August 12.
Prologis has submitted a final preliminary offer exceeding $18.7 billion to acquire Segro, marking a significant development in the industrial real estate sector. This latest proposal represents a $500 million increase from Prologis' previous rejected bid and is the fourth offer made by the company.
Segro's board of directors has unanimously concluded that the financial terms of this fourth proposal are at a level they would recommend to shareholders. The deal, if completed, would be one of the largest mergers ever of industrial REITs, valued at 14% above Segro's estimated net asset value at the end of June. The acquisition would significantly expand Prologis' footprint in Europe, adding 117 million square feet of industrial and data center space valued at $29.3 billion.
News of the pending deal initially caused Prologis' shares to decline on Thursday before recovering midday, while Segro's stock saw a rise of over 7% on the London Stock Exchange. Segro has extended the deadline for Prologis' formal offer, which includes a partial cash alternative of up to $4.6 billion, to August 12.
Prologis stated that a final deal is not guaranteed but views the combination as a compelling opportunity. Segro had previously rejected three earlier offers, arguing that Prologis' bids were opportunistic and that the company could achieve greater value as an independent entity. However, Prologis reportedly raised its bid again following shareholder feedback, including encouragement from Norges Bank Investment Management, which holds stakes in both companies, to reach mutually beneficial terms.
This potential acquisition comes as Prologis has demonstrated strong performance, raising its 2026 earnings guidance after signing a record 67 million square feet of leases, boosting occupancy to 95.5%. The company has also initiated $1.6 billion in new logistics and data center projects.