Segro agrees £14 billion Prologis takeover deal

Warehouse developer Segro has accepted a £14 billion takeover offer from Prologis.

The agreement comes after a weeks-long battle by the US operator to buy the FTSE 100 group.

Segro had previously rebuffed three offers, with the most recent failed move worth about £13.5 billion.

San Francisco-based Prologis will pay 1,032p for each Segro share, with shareholders to be paid largely through stock, as well as £3.5 billion in cash.

The expanded Prologis business will then apply for a secondary share listing in London.

David Sleath, chief executive at Segro – which has properties across London and the Midlands – said: “Prologis shares our conviction in the long-term structural drivers underpinning demand for modern logistics and data centre infrastructure.

“We believe the combination would bring together two highly complementary businesses and create a compelling platform.”

Daniel Letter, Prologis chief executive, added: “We have great respect for Segro, its people and the business they have built over many years.

“We look forward to building on the strengths of both companies and creating even greater value for customers and shareholders.”

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