Prologis is moving forward with its proposed $18.8 billion acquisition of London-based logistics warehouse operator Segro, marking a major step in one of the largest logistics real estate transactions of the year.
The announcement follows several rejected proposals before Segro’s board agreed to Prologis’ “best-and-final” offer, which values the British company at approximately $18.8 billion.
To help finance the acquisition, Prologis also announced a public offering of 15 million common shares, expected to generate around $2.1 billion in gross proceeds. The offering is priced at $140 per share, and underwriting banks J.P. Morgan and BofA Securities have the option to purchase up to an additional 2.25 million shares within the next 30 days.
Following the announcement, Prologis shares fell 2.8% in early Tuesday trading to $140.15, closely matching the offering price.
Prologis CEO Dan Letter said the transaction combines Segro’s high-quality warehouse portfolio and strong customer relationships with Prologis’ global operating platform, financial strength and logistics expertise, creating meaningful long-term value for shareholders.
If completed, the acquisition will expand Prologis’ European logistics portfolio by 47%, increasing its footprint to approximately 368 million square feet. The combined company will also control a European development pipeline totaling 13 million square feet.
Overall, the merged business is expected to manage approximately $269 billion in assets, further reinforcing Prologis’ position as one of the world’s largest logistics real estate companies.
Under the terms of the agreement, Segro shareholders will receive 0.092 newly issued Prologis shares for each Segro share they own, with the option to receive up to 25% of the consideration in cash.
Prologis expects the acquisition to be neutral to slightly dilutive to its core and adjusted funds from operations during the first full year after the transaction closes. Completion of the deal is anticipated during the first half of 2027.
