Prologis has made a bid of 16.6 billion dollars for Segro. Segro has rejected the offer, but its shares have soared by 16 per cent
The US giant has until 22 July to submit a formal bid or withdraw from the acquisition
Prologis Inc. has made a bid of 12.6 billion pounds (16.6 billion dollars) to acquire Segro Plc, betting on the growth of the UK’s data centre sector, but the London-based company has rejected what could be the largest deal ever for a listed European property firm.
According to a statement issued this morning, under the terms of the proposal submitted on 16 June, Segro shareholders were offered 0.084 new Prologis shares for each share held. Given the price of Prologis shares – $145.3 at the close of trading on 23 June – this implies a value of 925 pence per Segro share, representing a 24.6 per cent premium over the British property owner’s initial market price.
Today, Segro’s share price shot up by 16 per cent at the opening bell and remained at that level until the close, finishing at 863 pence per share – below the price offered by Prologis.
Like most property owners in the UK, Segro’s shares have consistently traded at a price below the market value of its assets, and the offer would allow shareholders to realise a return at a price in line with the latest valuation reported in December. Prologis has until 22 July to submit a formal offer or withdraw from the acquisition.
This initiative comes at a time when industrial property owners are exploring the possibility of converting some of their assets, which are equipped with infrastructure, into data centres, in an attempt to capitalise on the artificial intelligence boom. Segro, Europe’s largest warehouse owner, has a rapidly growing data centre business, which has attracted the interest of an investor who is very active in the sector.
Prologis, the world’s largest owner of industrial property, has stated that the merger would help to ‘unlock the significant intrinsic value of Segro’s development projects and data centres’. The company is the second-largest property shareholder in the United States, after Welltower Inc.
Segro, meanwhile, is Europe’s largest warehouse owner and the UK’s highest-valued property investment trust (REIT). At the end of 2025, it managed assets worth £22 billion and its portfolio was valued at approximately £18.96 billion. The company’s portfolio of data centre projects includes potential projects with a capacity of 2.5 gigawatts.
