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Segro accepts Prologis takeover offer in deal valued at £14.3B
The all-cash buyout will cut about 20% of the market capitalization of the UK listed real estate sector and expand Prologis to a portfolio of 368 million square feet across Europe.
Bisnow reports that Segro has accepted Prologis' £14.3 billion takeover offer, a transaction expected to be the largest-ever European real estate deal and one of the biggest deals for any European company this year. The acceptance also ends a prolonged bidding process that began after Prologis first approached Segro in March 2024.
The deal will tip Prologis' assets under management to just over $200 billion, and the combined portfolio is set to cover 368 million square feet. Segro’s market capitalization was $138 billion prior to the announcement, placing it as the world’s second-largest REIT and making the acquisition a major consolidation move within UK listed property.
Bisnow said the courtship included four Prologis bids between June and July, with the initial £12.6 billion offer in June matching Segro’s net asset value. Segro’s board dismissed that first bid as an attempt to buy the company “on the cheap,” while the accepted offer implies a 14% premium to Segro’s 30 June net asset value and a 39% premium to its share price before the first bid was revealed.
Data centers were a key issue during negotiations, according to Bisnow, and the combined company plans a short-to-medium-term development pipeline of 6.2 gigawatts, with an additional 12.5 gigawatts potentially identified in longer-term opportunities. The agreement is also described as removing roughly 20% of the market capitalization of the UK listed real estate sector.