Segro agrees to £14bn takeover by US rival

By the Editorial Team · Wednesday, August 5, 2026

US-based logistics real estate firm Prologis has agreed to acquire British developer Segro for £14 billion, following months of negotiations and multiple improved offers. The merger will create one of the world's largest logistics and data center property platforms, expanding Prologis’s European footprint and positioning the combined company for growth in the growing e-commerce and AI infrastructure markets.

British warehouse and logistics property developer Segro has agreed to a £14 billion takeover bid from US-based rival Prologis, concluding a multi-week negotiation process. The agreement, announced yesterday, follows several earlier offers from Prologis that Segro had rejected.

Under the terms of the deal, Prologis will pay 1,032 pence per Segro share, in addition to providing £3.5 billion in cash to shareholders. The remaining consideration will be delivered through stock, and the combined company plans to seek a secondary listing on the London Stock Exchange.

Segro, a FTSE 100 company, owns approximately 117 million square feet of industrial and warehouse space across Europe, with a portfolio valued at around £12 billion. Its holdings include the widely known Slough trading estate, a site featured in the television series "The Office." The company is also a significant player in the data center sector, an area expected to grow amid increasing investment in artificial intelligence technologies.

David Sleath, Segro’s chief executive, stated that both companies share confidence in the long-term demand for modern logistics and data center infrastructure. He emphasized that the proposed transaction would unite two complementary businesses, combining Segro’s development pipeline with Prologis’s established European presence, global scale, and operational capabilities. Sleath added that the deal maintains a shared focus on disciplined capital allocation and customer service.

Investors including APG Asset Management, Norges Bank, and CCLA Investment Management reportedly encouraged negotiations, viewing the combination as offering value through enhanced scale and resources. The deal is one of the largest takeovers of a UK-listed company this year, ranking among the biggest foreign acquisitions on record, according to London Stock Exchange data. The combined market capitalization of Prologis and Segro exceeds $150 billion.

Prologis, headquartered in San Francisco, serves major logistics clients such as Amazon, FedEx, and UPS. The company has been actively expanding its data center offerings alongside Segro, capitalizing on growing demand in e-commerce and technology infrastructure.

While Segro initially resisted overtures from Prologis, the final offer represented a premium of approximately 42 percent over its share price before the takeover interest became public. This premium followed four increasing bids over several months, the highest valued at about £13.5 billion.

Prologis shares fell slightly in New York trading following the announcement, while Segro’s shares rose modestly on the London market. Both companies expressed optimism that the merger would create a leading global logistics real estate platform, leveraging their combined assets and expertise to drive future growth.

The transaction is subject to customary regulatory approvals and is expected to complete after the stipulated UK takeover timetable, which allows until mid-August for finalization.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.