Segro, the London-based logistics warehouse operator, has rejected an enhanced £13.5 billion ($18.2 billion) takeover bid from San Francisco-based Prologis, according to a Monday announcement reported by FreightWaves. The bid — Prologis’ third overall — represented a 6% increase above its initial proposal and included a 20% cash component, a departure from the prior two all-stock offers.
Offer Details
The latest offer valued each Segro share at a 41% premium to Segro’s three-month weighted average share price. Under the terms, Segro shareholders would receive 0.089 new Prologis shares for each share held, with the option to take up to 20% in cash. The prior two offers from Prologis were all-stock transactions, and Segro had previously rejected a March 2024 all-stock offer, which Prologis referred to as "opportunistic."
Prologis asserted in its Monday news release that a business combination would give Segro access to a larger logistics real estate network and a lower cost of capital. It said Segro trades at a discount because it is required to make dilutive equity issuances to fund projects.
"Prologis’ proposal provides upfront value, greater flexibility and long-term upside opportunity," the Monday news release stated. "SEGRO’s standalone plan relies on flawless execution of a significant, long-dated development pipeline, substantial third-party funding and an unjustified valuation."
Prologis has until 5:00 pm London time on Wednesday to finalize firm intentions under British takeover rules.
Rejection Rationale
Segro countered that Prologis’s proposals have been "opportunistically timed to capitalise on a dislocated share price and just as SEGRO’s markets are inflecting and momentum is accelerating," according to a Monday statement. The company warned that accepting the bid would transfer the benefits of Segro’s "considerable embedded value" to Prologis shareholders before they are reflected in Segro’s earnings and valuation.
Segro said it would consider "any proposal which appropriately reflects the considerable embedded value and prospects of our business."
Prologis noted that had Segro accepted its March 2024 all-stock offer, Segro’s shareholders "could have been better off by 36.5%."
Market Reaction
Shares of Segro on the London Stock Exchange (LSE.SGRO) were up 0.2% in late trading Monday. The stock has risen 21% since Prologis’ first takeover bid on June 24. Meanwhile, Prologis shares (NYSE: PLD) were off 1.1% at 10:08 a.m. EDT, compared to the S&P 500 which was up 0.3%.
Last week, Prologis raised its full-year 2026 outlook, citing record leasing activity for the fourth time in the past seven quarters.
Broader Context
The rejected bid underscores how logistics real estate is becoming an increasingly strategic and consolidated asset class. The pursuit of Segro reflects Prologis’ ambition to expand its global footprint and achieve scale efficiencies in a sector where capital access and development pipelines are critical competitive factors. Segro’s insistence that its standalone plan will deliver value suggests confidence in its development pipeline and market momentum, despite Prologis’ claims of an unjustified valuation.
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