Prologis has struck a deal to buy Segro, its British rival, in a share-and-cash transaction valuing the London-listed landlord at roughly $18.8bn. The agreement, confirmed in early August after six weeks of talks, would hand the US warehouse group a 47% larger European footprint and take its holdings past 34 million sqm.
Strategic Rationale
Segro’s board agreed to recommend the offer after Prologis raised its proposal by about $1.5bn. Talks started quietly in mid-June, when Segro first rebuffed an approach it called opportunistic, pointing to a share price held down by international tensions. Data centres are part of the appeal. Prologis put that expertise at the front of a July memorandum aimed at Segro investors, and Segro has run data centre assets since 2005.
What Segro Brings
The logistics case rests on the shape of Segro’s portfolio. Close to two thirds sits in urban and distribution-focused property. Big-box warehouses account for just 35%. UK assets carry 62% of the value, well ahead of Germany and France, and Segro controls large land holdings across several European markets that open development room for the combined group. This year marks a century since the company began leasing logistics space.
Timeline and Structure
The deal pays Segro shareholders in Prologis stock, with a cash component that could reach €4bn. Both sides expect to close in the first half of 2027.
Whether regulators wave through a landlord of that scale across the UK, Germany and France is the next question.
