US logistics and real estate firm Prologis has made a fourth and reportedly final £14 billion takeover offer for UK-based warehouse landlord Segro, marking the largest acquisition bid for a London-listed company in 2024. The revised proposal, announced on July 25, offers Segro shareholders 0.092 new Prologis shares for each Segro share, representing a 9.5% increase on Prologis’s initial bid made in June. The offer includes a cash option of up to £3.5 billion, allowing shareholders to receive either shares or cash, with the possibility that Segro’s investors would hold approximately 9% of the combined group if the cash alternative is fully taken up.
Segro, known for its extensive logistics and datacentre portfolio across Europe, had initially resisted the takeover, asserting that remaining independent would yield superior long-term returns. The company cited its unique positioning in supply-constrained markets and growth prospects in high-demand sectors such as AI datacentres and large-scale logistics hubs for e-commerce companies like Amazon and Netflix. Segro’s shares had been trading significantly below their peak since 2022, contributing to ongoing shareholder debate.
However, after weeks of discussion and mounting pressure from major institutional investors, including Norway’s sovereign wealth fund Norges Bank Investment Management and Dutch asset manager APG, Segro’s board reversed its stance and stated it was “minded to recommend” the offer, pending a firm proposal from Prologis. The board highlighted the improved terms of the bid and the potential for enhanced shareholder value. Prologis has agreed to explore a secondary listing for the combined entity on the London Stock Exchange, aiming to maintain a presence in the UK market.
Prologis CEO Dan Letter emphasized that the company had responded to shareholder feedback by improving its offer and expressed confidence that a combination would unlock significant value. The California-based firm has extended the deadline to finalize the offer until August 12.
The potential takeover has drawn mixed reactions from market observers. Some analysts view the deal as a logical consolidation within the industrial real estate sector, where Prologis’s greater financial resources could accelerate development. Others lament the likely loss of a distinctive UK-focused real estate player from the London market, raising concerns about the broader trend of overseas takeovers and the diminishing diversity of the FTSE 100. Critics note that while a secondary London listing is promised, trading activity may predominantly shift to the US.
Segro’s history dates back to 1920 when it was founded as the Slough Trading Company. The firm’s evolution into a pan-European industrial landlord with a focus on logistics and datacentres has made it a significant component of the UK’s real estate landscape. The outcome of the proposed deal will be closely watched as it is set to reshape the ownership structure and strategic direction of one of the leading companies in this sector.