Segro rejects improved £13.5 billion takeover bid from Prologis

Monday 20 July 2026 - 07:15

By: Sahili Aya

Segro rejects improved £13.5 billion takeover bid from Prologis

Segro has turned down an enhanced takeover proposal from U.S.-based logistics real estate leader Prologis, reaffirming its position that the offer undervalues one of the United Kingdom’s largest warehouse property owners.

The latest proposal, disclosed by Prologis on Monday, placed an equity value of approximately £13.5 billion ($18.2 billion) on Segro. Despite the improved terms, Segro's board unanimously rejected the approach, marking the third unsuccessful attempt by the American logistics property giant to secure the British real estate investment trust.

Under the revised proposal, Segro shareholders would have received 0.0890 newly issued Prologis shares for each Segro share, alongside a partial cash alternative of up to £2.7 billion. The overall package valued Segro at £9.93 per share.

The rejection highlights the widening gap between the two companies' views on valuation, particularly as demand for high-quality logistics assets remains strategically important for global supply chains and e-commerce operators.

Third proposal fails to win board support

The latest decision follows an earlier unsuccessful bid made in June, when Prologis offered approximately £12.6 billion in an all-share transaction.

At the time, Segro dismissed the proposal as both opportunistic and materially below the company's intrinsic value, arguing that it failed to reflect the long-term growth prospects of its extensive logistics property portfolio.

By rejecting the improved offer, the board has again signaled confidence in the company's standalone strategy and future earnings potential.

Strategic importance of logistics real estate

A combination of Prologis and Segro would have created one of the world's largest owners of logistics and warehouse assets, strengthening Prologis' presence across the European industrial property market.

Warehouse and distribution facilities have become increasingly valuable in recent years as retailers, manufacturers and logistics operators expand their networks to support faster deliveries, supply-chain resilience and growing online commerce.

Although the improved proposal demonstrates Prologis' continued interest in acquiring Segro, there is currently no indication that the British company is prepared to engage on the terms presented.

Investors will now be watching closely to see whether Prologis returns with another revised offer or shifts its acquisition strategy elsewhere.