Prologis makes $18.8 billion takeover bid for UK logistics group Segro

09:38

By: Sahili Aya

Prologis makes $18.8 billion takeover bid for UK logistics group Segro

U.S. logistics real estate giant Prologis has submitted a takeover proposal worth approximately £14 billion ($18.8 billion) for British warehouse operator Segro, in a move that could reshape the global industrial property sector.

The offer was presented shortly before a deadline linked to takeover discussions and values each Segro share at around 1,031.7 pence, combining Prologis stock and a partial cash alternative of up to £3.5 billion.

Under the proposed structure, Segro shareholders would receive 0.0920 Prologis shares for each Segro share, alongside a cash option. The approach represents Prologis' latest effort to expand its position in the logistics property market, where demand for warehouses and distribution facilities has increased due to the growth of e-commerce and supply chain transformation.

Following news of the proposal, Segro shares gained nearly 4%, reaching 901.2 pence during early trading, as investors assessed the potential value of the transaction.

Segro confirmed that it had engaged with Prologis and indicated that it would be willing to review an improved proposal. The British company has not yet disclosed whether it considers the current offer sufficient or whether negotiations are expected to continue.

A potential acquisition would bring together two major players in logistics real estate, combining Prologis' global portfolio with Segro's extensive presence across the United Kingdom and European markets.

The logistics property sector has attracted significant investor attention in recent years as companies seek strategically located warehouses to support changing consumer habits, online retail growth and more resilient supply chains.

For Prologis, the deal would represent one of the largest expansions of its European footprint and reinforce its position as one of the world's leading owners and operators of logistics facilities. For Segro, the proposal comes at a time when demand for high-quality industrial assets remains strong despite broader uncertainty in commercial real estate markets.

The outcome of the negotiations will depend on whether Prologis can secure support from Segro's board and shareholders, as well as whether any competing interest emerges before the takeover process advances.