Prologis (NYSE: PLD) has revealed it submitted a preliminary all-share proposal to acquire SEGRO (LSE: SGRO) on 16 June 2026, valuing the UK logistics property group at approximately £12.6 billion.
The proposal equated to 925 pence per SEGRO share, representing a premium of around 25% to 31% compared with recent market prices.
Under the terms of the indicative proposal, SEGRO shareholders would receive 0.084 new Prologis shares for each SEGRO share they held.
SEGRO’s board rejected the proposal on 23 June, prompting Prologis to go public with its approach and appeal directly to SEGRO shareholders to support further discussions.
Shares in SEGRO surged 15.5% to 857p after Prologis disclosed the approach, reflecting strong investor appetite for a potential deal despite the board’s firm opposition.
SEGRO said its board “unanimously and unequivocally” rejected the proposal, arguing that the proposed offer “falls a long way short” of its own assessment of value.
The company described the bid as “opportunistically timed,” adding that it “sought to take advantage of the clear dislocation” between its current share price and its underlying business.
“Prologis is trying to acquire SEGRO on the cheap when our share price has been dislocated by the Middle East conflict and at a price that reflects none of the quality, scarcity and growth embedded in the business,” said Andy Harrison, chairman of SEGRO.
“We have unanimously rejected their Proposal because we continue to believe our compelling standalone investment case can deliver superior shareholder value,” Harrison added, stating that capital was not a constraint on the company’s ability to unlock value for shareholders.
Prologis, the world’s largest logistics real estate investment trust with a $139 billion market cap and over 1.2 billion sq ft of property across 19 countries, argued that SEGRO’s growth has been constrained by its balance sheet.
The San Francisco-based company contended that SEGRO shares have “traded at a persistent discount” to the value of underlying assets, partly due to reliance on dilutive equity issuances to raise capital.
Prologis said its greater financial firepower could unlock the “significant embedded value of Segro’s development and data centre pipeline in a way that Segro will not be able to do on a standalone basis.”
The deal would represent Prologis’ largest transaction since its $26 billion acquisition of Duke Realty in 2022, significantly expanding its European presence.
Prologis believes a merger would create one of the leading logistics real estate platforms in Europe, combining two substantial portfolios with major development pipelines.
The announcement lifted the broader UK property sector, with Tritax Big Box REIT climbing 5.4%, British Land Company rising 3.2%, and Land Securities Group gaining 3%.
On the FTSE 250, Big Yellow Group rose 4%, Great Portland Estates climbed 3.75%, and Hammerson advanced 3.3% following the Prologis disclosure.
Broker Stifel warned that if SEGRO were taken over, “it would represent a serious challenge to the long-term viability of the UK Listed property sector,” given its dominant position in the EPRA UK REIT Index.
Under UK takeover regulations, Prologis has until 22 July to either announce a firm intention to make an offer or walk away entirely from the process.