Prologis Completes $14 Billion Takeover of Segro

Logistics giant Prologis has agreed to a £14 billion takeover of Segro, concluding a protracted negotiation that will see another British company acquired by a foreign entity. The FTSE 100-listed warehouse firm announced it had accepted the offer, which values each Segro share at 1032p. This price represents a 39 percent premium over Segro's closing share price on June 23, the day before Prologis publicly revealed its interest.

Segro had initially rejected three prior bids from Prologis, with its board suggesting the company was worth closer to £18 billion. The US-based logistics firm's first offer was 925p per share, valuing Segro at £12.6 billion. The final agreement came after Prologis increased its offer to over £14 billion, a figure Segro's board eventually deemed acceptable.

Prologis stated that Segro shareholders will receive stock, with an option for a partial cash payout totaling up to £3.5 billion. Segro's acceptance of this deal makes it the fifth company listed on the FTSE 100 to agree to a foreign takeover in 2026. Previous acquisitions include Intertek, Beazley, Schroders, and DCC.

This wave of foreign takeovers has raised concerns about potentially undervalued British companies being targeted by overseas predators. While commercial property experts at CBRE had valued Segro at approximately £18 billion, a price tag Prologis called "unrealistic," Segro's board reportedly softened its stance after discussions with investors who viewed the offer favorably, particularly in light of geopolitical uncertainties.

In connection with the acquisition, Prologis has committed to establishing a secondary listing for its shares on the London Stock Exchange, as Segro will cease to be listed. Segro's shares saw a modest increase of 0.85 percent, trading at 969.2p, and have gained 36 percent over the year.