Prologis to acquire Segro for up to £14.3 billion in logistics real estate mega-merger

The deal

Prologis, the world’s largest logistics property group, has secured a recommended takeover of British rival Segro after months of pursuit. The boards of both companies announced the agreement on Tuesday, valuing Segro at up to £14.3 billion ($19.2 billion, €16.4–16.7 billion). The transaction is structured as a mix of Prologis stock and an optional cash component, and it ranks among the largest foreign acquisitions of a UK-listed company.

Shareholder terms

The offer fixes the price at 1,031.7 pence per Segro share. Investors will receive 0.092 new Prologis shares for each Segro share they hold, or, under a partial cash alternative funded by a pool of up to £3.5 billion, 0.069 new Prologis shares plus 258 pence in cash, the cash element amounting to 25% of the consideration. On top of the consideration, shareholders retain the right to Segro’s 2026 dividends: an interim dividend of up to 10.14 pence per share, declared on 30 July, and a final dividend of up to 22.56 pence, both of which Segro intends to pay before completion. Including those payouts, the maximum value of the offer reaches approximately £14.3 billion.

David Sleath, Segro's chief executive, recommended the offer to shareholders.

“The Prologis proposal offers shareholders an unmissable opportunity to crystallise the value created by Segro and to benefit from the future growth of the combined group.”

Investor pressure and premium

Segro had rejected three earlier approaches from Prologis, judging them too low. Pressure from institutional investors, including APG Asset Management, Norway’s central bank and CCLA, pushed the two sides back to the table. The final price represents a 42% premium to Segro’s closing share price on 23 June, the last trading day before Prologis communicated its interest. On Tuesday, Segro shares edged up nearly 1% but remained below the offer price, while Prologis stock slipped 1.5% in pre-market US trading.

Strategic rationale

The combination creates a logistics real estate platform with roughly $269 billion in assets under management. In Europe, the merged operating portfolio will span 368 million square feet (34.2 million square metres), a 47% increase on Prologis’s current footprint. The development pipeline rises to 13 million square feet and the European land bank expands by 126%. Both companies are also building out data-centre capacity to capture demand from artificial intelligence. Danni Hewson, an analyst at AJ Bell, noted that Segro’s accelerating shift from warehouses toward data centres largely explains Prologis’s interest. Prologis counts Amazon, FedEx and UPS among its tenants.

Daniel Letter, chief executive of Prologis, framed the deal as a combination of the two portfolios.

“We are pleased to have reached an agreement with the Segro board on a merger that, in our view, will generate significant value.”

What’s next

The deal is expected to close in the first half of 2027, subject to approval by Segro shareholders and customary conditions. Once completed, Prologis intends to list its shares on the Main Market of the London Stock Exchange. Current Segro shareholders would own approximately 8.9% of the combined company if the partial cash alternative is fully exercised.