Prologis Wins $18.8 Billion Bid for European Logistics Giant Segro

Four Bids to Get a Deal Done

Prologis first approached Segro in late June with an all-share offer valuing the British warehouse landlord near $16.6 billion. Segro's board rejected it, and rejected two more richer offers that followed in July, one of which reached $18.2 billion, a premium north of 40 percent to Segro's trading average at the time. The board called each proposal opportunistic. Prologis countered that the board's own valuation was aspirational.

The fourth offer succeeded where the others didn't, helped along by a sweetener: Prologis agreed to pursue a secondary listing on the London Stock Exchange, addressing a sticking point for a board wary of losing a UK-listed champion to an American acquirer.

"We have great respect for Segro, its people and the business they have built," Daniel Letter, CEO of Prologis, said in a statement.

Segro's leadership, which had spent weeks defending the company's standalone value, ultimately came around to Prologis' pitch on the long-term case for logistics and data center demand, according to a statement from CEO David Sleath.

What the Combined Platform Looks Like

Segro's portfolio spans approximately 117 million square feet across the UK and Continental Europe, a footprint increasingly anchored by its growing data center pipeline. Layered onto Prologis' existing 1.3 billion-square-foot global platform and roughly $240 billion in assets under management heading into the deal, the combination pushes total AUM to about $269 billion.

The European impact is the sharpest number in the filing: Prologis' regional operating portfolio grows 47 percent to 368 million square feet, its development pipeline in the region reaches 13 million square feet, and its European land bank expands 126 percent. At $18.8 billion for a roughly 117 million-square-foot portfolio, the deal pencils out to about $161 per square foot of Segro's UK and European holdings, before accounting for the value of its development pipeline and land bank.

A Century-Old Landlord Changes Hands

Segro's roots go back to 1920, when Percival Perry and Noel Mobbs founded the Slough Trading Company to repurpose a former military repair depot outside London, the site that became the Slough Trading Estate. The company converted to REIT status and took the Segro name in 2007, and by the time Prologis came calling this year, it was the largest publicly traded property company in the UK.

Prologis, for its part, has been the product of consolidation before: the San Francisco-based REIT was itself formed in 2011 through the merger of AMB Property and the original Prologis Trust. This deal would rank among the largest takeovers of a European-listed property company on record.

What Happens Next

The acquisition still needs sign-off from Segro shareholders and regulators in both the UK and Europe, with closing targeted for the first half of 2027. If it clears, the combined company inherits Segro's data center pipeline at a moment when Prologis has been racing to secure power capacity for exactly that kind of growth, a fight that just got a lot bigger platform to fight it from.