Prologis Inc. made a $16.6 billion (£12.6 billion) offer to acquire Segro Plc, Europe's largest warehouse landlord, with a proposal of 0.084 new Prologis shares for each Segro share, valuing Segro at 925 pence per share. This represented a 24.6% premium to Segro's undisturbed price, based on Prologis's share price of $145.3 as of June 23, 2026. Prologis went public with the offer after Segro's board unanimously rejected it on June 23, following an initial submission on June 16.
Segro's board described the proposal as "inadequate, opportunistic and one-sided," stating it fell "a long way short of Segro’s own views on value." They believe Prologis is attempting to acquire Segro "on the cheap," capitalizing on a dislocation between Segro's share price and its underlying business. This dislocation is attributed to geopolitical issues that have adversely impacted UK and European real estate valuations relative to the US REIT sector. Segro highlighted its strong balance sheet, clear strategy, and attractive development pipeline, including an "exceptional data center platform," as reasons for its confidence in delivering superior shareholder value independently.
Prologis emphasized the "compelling value" for Segro shareholders, who would own approximately 10.5% of the combined entity. They argued that the merger would unlock and accelerate the embedded value of Segro's development and data center pipeline, which Prologis believes Segro is unable to fully realize on its own due to balance sheet capacity and persistent trading discounts. Prologis noted its stronger total shareholder returns over the past five years (38.6% for Prologis versus a 20.1% decline for Segro).
Segro's shares had fallen significantly since a 2021 peak of over £14 to just over £6 last year, trading at £7.42 at market close on June 23 before the Prologis announcement. Prologis has until 5:00 PM on July 22, 2026, to make a firm bid or withdraw, under City takeover rules. Segro's chairman, Andy Harrison, reiterated the board's stance, stating that Prologis's presentation did not change their clear position on the undervaluation.
