Prologis, one of the world’s largest logistics real estate operators, has reached a definitive agreement with the board of Segro to acquire the British group, the UK’s leading Reit (real estate investment trust), in a transaction worth about £14bn, equal to around €16.3bn. If completed, the deal will create the world’s largest logistics real estate platform, strengthening Prologis’s presence in the UK and continental Europe. The final terms of the offer, which Prologis has described as not capable of being further improved, provide for the exchange of 0.0920 new Prologis shares for each Segro share, plus a partial cash alternative of up to £3.5bn (€4.1bn), equal to 25% of the total transaction value. Based on Prologis’s closing share price and the sterling-dollar exchange rate on 21 July 2026, the offer values each Segro share at 1,031.7 pence, for a total of about £14bn. Including the expected final 2026 dividend, of up to 22.56 pence per share, the overall value for shareholders rises to 1,054.3 pence per share.
The negotiations developed over just a few weeks. On 16 June 2026, Prologis submitted an initial non-binding proposal worth £12.6bn (€14.7bn); Segro’s board rejected it on 23 June, considering the timing opportunistic for the acquiring group. Prologis then made the offer public the following day, 24 June, and Segro’s share price rose on the stock market by between 16% and 20%. In the following weeks, during which both companies published investor presentations, Prologis raised its offer four times, reaching £14bn on 21 July 2026 and declaring the bid final, with no room for further increases. Segro’s board said it was willing to recommend the offer to shareholders. The UK Takeover Panel (British takeover regulatory authority) has meanwhile extended the “put up or shut up” deadline from 22 July to 12 August 2026, requiring any party that has expressed interest either to formalise a binding offer under Rule 2.7 of the UK Takeover Code or to withdraw. The announcement of the final terms dates back to 4 August 2026.
One of the most important elements of the agreement is Prologis’s contractual commitment to establish, before completion of the transaction, a secondary listing of its shares on the London Stock Exchange, a condition Segro had set as a prerequisite for the support of its board. Completion is expected in the first half of 2027, subject to approval by Segro shareholders and the relevant regulatory and antitrust authorities, including those in European markets, particularly France and Germany, where the two groups’ activities overlap significantly. Before then, however, Segro’s board will have to submit the transaction to a shareholder vote within the timeframe set by the Takeover Code.
