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Prologis Doubles Down on Segro Acquisition Push After Initial Rejection

Prologis reiterated its case for acquiring London-based warehouse operator Segro after the company rejected a £12 billion offer, the San Francisco REIT said Tuesday. The all-stock deal would deliver value beyond the initial 25% premium, offering Segro shareholders 0.084 new Prologis shares for each share held. The transaction provides Segro access to a larger logistics real estate network and stronger balance sheet capacity. Prologis highlighted Segro's lagging shareholder returns, which declined 20.1% over five years compared to Prologis' 38% gain. The transaction would triple Segro's European footprint to 363 million square feet and unlock an embedded data center pipeline the REIT said Segro cannot fully monetize independently. The deal ranks as Prologis' largest since acquiring Duke Realty for $26 billion in 2022. Segro's board unanimously rejected the offer, calling it inadequate and opportunistic, and maintaining its standalone investment case offers superior shareholder value.