Prologis has confirmed that its enhanced bid to acquire UK-based logistics warehouse operator Segro has been rejected, extending the high-profile takeover battle between two of the industry’s largest real estate players.
The latest proposal values Segro at £13.5 billion (approximately $18.2 billion), representing a 6% increase over Prologis’ initial offer. Unlike the previous two proposals, which were entirely stock-based, the revised bid would allow Segro shareholders to receive 0.089 new Prologis shares for each Segro share, along with the option to take up to 20% of the consideration in cash.
According to San Francisco-based Prologis, the offer represents a 41% premium over Segro’s three-month weighted average share price. The company argues that combining the two businesses would provide Segro with access to a significantly larger global logistics real estate platform while benefiting from a lower cost of capital. Prologis has also maintained that Segro’s current valuation has been held back by the need to issue dilutive equity to finance its development pipeline.
In its statement, Prologis said the proposal delivers immediate value, greater financial flexibility and stronger long-term growth opportunities. The company also questioned Segro’s standalone strategy, arguing that it depends on flawless execution of an extensive long-term development pipeline, significant third-party funding and what it considers an unjustified valuation.
Segro, however, firmly rejected the proposal, describing its timing as opportunistic. The company said Prologis was attempting to capitalize on a temporarily depressed share price just as market conditions improve and the company’s operational momentum accelerates.
According to Segro, accepting the offer at this stage would transfer the benefits of the company’s substantial embedded value and future growth potential to Prologis shareholders before those advantages are fully reflected in Segro’s earnings and market valuation.
Segro said it had rejected the current proposal but was open to any future offer that properly reflected the underlying value of its business and its long-term potential.
Prologis also revealed that Segro had rejected an earlier all-stock proposal made in March 2024, which Segro likewise characterized as opportunistic. Prologis claims that shareholders could have been 36.5% better off had that original offer been accepted.
Under UK takeover regulations, Prologis now has until 5:00 p.m. London time on Wednesday to either submit a formal takeover offer or walk away from the deal.
The takeover discussions come shortly after Prologis increased its full-year 2026 financial outlook, citing record leasing activity for the fourth time in the past seven quarters, highlighting continued strength in the logistics warehouse market.
On Monday, Segro shares edged 0.2% higher during late trading on the London Stock Exchange and have gained 21% since Prologis announced its initial takeover approach on June 24. Meanwhile, Prologis shares were down 1.1% at 10:08 a.m. EDT, while the S&P 500 was up 0.3%.
The proposed acquisition underscores the increasing strategic significance of logistics real estate as key industry players continue to pursue consolidation to expand their global warehouse networks and improve their competitive positions.
