US real estate firm Prologis has raised its offer to acquire UK-based industrial property group Segro to £14 billion, signaling its intent to finalize the deal after weeks of negotiations. The revised bid, announced on Tuesday, values Segro at 1,032 pence per share, up from the previous £13.5 billion offer of 993 pence per share made last Monday.

Segro’s board indicated it would be inclined to recommend the improved proposal to shareholders if a formal offer is submitted before the extended deadline of August 12. The company had previously maintained that remaining independent would deliver greater shareholder value, citing a share valuation near 1,300 pence.

The offer, which would represent the largest transaction involving a London-listed company so far this year, proposes a mix of cash and shares, with up to £3.5 billion payable in cash. If shareholders opt fully for the cash element, they would collectively own approximately 9 percent of the combined entity, with Prologis shareholders holding the majority stake. Additionally, Prologis has agreed to maintain a secondary London listing for its shares should the transaction proceed.

Prologis chief executive Dan Letter emphasized that this is the firm’s “best and final offer” after responding to shareholder feedback. Letter criticized Segro’s resistance as based on “very aspirational” financial projections. The US company’s bid has received support from major investors, including the Norwegian Government Pension Fund Global and Dutch asset manager APG, which collectively hold significant stakes in both companies. APG has called for formal discussions between Segro and Prologis to fully explore the potential benefits of a merger.

Following the announcement, Segro’s shares closed at 895 pence, below the current offer price, reflecting ongoing uncertainty over the deal’s outcome. Prologis is now poised to commence due diligence on Segro as it seeks to complete the acquisition within the agreed timeframe.