Key Takeaways
- • Prologis has agreed to acquire UK-based Segro for £14 billion ($18.8 billion), with the final deal structure valuing Segro shares at 1,032p per share plus a final dividend of up to 22.56p, bringing total consideration to £14.3 billion.
- • Segro shareholders will receive 0.92 Prologis shares for each Segro share held, representing a 9.5% increase from Prologis's initial proposal and constituting the final, non-negotiable offer from the US logistics landlord.
- • The combined entity will create a European industrial property powerhouse with approximately £200 billion in assets under management and a portfolio covering around 368 million square feet across the continent.
- • Completion is targeted for the first half of 2027, subject to shareholder approval, court sanction, and regulatory clearances; Prologis has committed £3.5 billion in cash as part of the transaction structure.
- • This acquisition consolidates the leadership position of Prologis in European logistics real estate, combining two of the largest industrial REIT operators in a strategically significant transaction for the sector.
Summary
Prologis Inc. has secured agreement on final terms to acquire Segro Plc, the UK's largest real estate investment trust, for £14 billion ($18.8 billion) according to Bloomberg and multiple market sources dated August 4, 2026. The transaction represents one of the largest takeovers in the European property sector and marks the culmination of Prologis's pursuit of its UK rival, which began with an initial proposal that was subsequently increased following board negotiations.
Under the agreed terms, Segro shareholders will receive 0.92 Prologis shares for each Segro share held, valuing each Segro share at 1,032p. Additionally, Segro shareholders will receive a final dividend of up to 22.56p per share, bringing the total transaction value to £14.3 billion when this dividend is included. The stock component reflects Prologis's final, non-negotiable proposal, representing a 9.5% increase from its initial bid structure and superseding all previous offers. Prologis will also provide £3.5 billion in cash as part of the consideration package.
The combined entity will establish an industrial property leader with approximately £200 billion of assets under management and a European logistics portfolio encompassing roughly 368 million square feet. This consolidation aligns with the strategic priorities of both organizations in the European logistics sector, particularly as e-commerce and supply chain modernization continue to drive demand for modern industrial facilities.
The acquisition is expected to complete during the first half of 2027, contingent upon customary closing conditions including approval from Segro shareholders, court sanction in the UK, and regulatory clearances from relevant authorities. The transaction has been structured to provide certainty to both parties' stakeholders while maintaining the combined company's competitive positioning in an increasingly consolidated European logistics real estate market.
Under the agreed terms, Segro shareholders will receive 0.92 Prologis shares for each Segro share held, valuing each Segro share at 1,032p. Additionally, Segro shareholders will receive a final dividend of up to 22.56p per share, bringing the total transaction value to £14.3 billion when this dividend is included. The stock component reflects Prologis's final, non-negotiable proposal, representing a 9.5% increase from its initial bid structure and superseding all previous offers. Prologis will also provide £3.5 billion in cash as part of the consideration package.
The combined entity will establish an industrial property leader with approximately £200 billion of assets under management and a European logistics portfolio encompassing roughly 368 million square feet. This consolidation aligns with the strategic priorities of both organizations in the European logistics sector, particularly as e-commerce and supply chain modernization continue to drive demand for modern industrial facilities.
The acquisition is expected to complete during the first half of 2027, contingent upon customary closing conditions including approval from Segro shareholders, court sanction in the UK, and regulatory clearances from relevant authorities. The transaction has been structured to provide certainty to both parties' stakeholders while maintaining the combined company's competitive positioning in an increasingly consolidated European logistics real estate market.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.