Prologis’ European Rival Segro Accepts $18.8B Takeover Offer

Prologis, the world’s largest industrial landlord, is about to get even bigger.

The San Francisco-based real estate investment trust (REIT) has succeeded in its fourth offer to acquire rival Segro, the United Kingdom’s largest REIT, in a deal valuing Segro’s equity at roughly $18.8 billion. 

Prologis announced Tuesday that Segro’s once-resistant board would be recommending the deal. The combined portfolios’ global platform will total approximately $269 billion of assets under management. 

For the U.K., the deal means losing its largest REIT, the history of which stretches back more than a century. Segro’s portfolio spans approximately 117 million square feet across the U.K. and Europe, and has been made increasingly valuable by its expanding data center pipeline.

“Prologis shares our conviction in the long-term structural drivers underpinning demand for modern logistics and data centre infrastructure,” David Sleath, CEO of Segro, said in a statement.

“We believe the combination would bring together two highly complementary businesses and create a compelling platform, combining Segro’s exceptional portfolio and development pipeline with Prologis’ existing European business and global scale, customer franchise and operational capabilities, while retaining a shared commitment to disciplined capital allocation, customers and people,” Sleath added.

Prologis’ European footprint is projected to grow by 47 percent with a 368 million-square-foot regional operating portfolio. The deal anticipates a combined European development pipeline of 13 million square feet and a 126 percent increase in Prologis’ European land bank.

The acquisition is expected to close in the first half of 2027, subject to legal, regulatory and Segro shareholder approvals. 

The news follows weeks of back-and-forth between the longtime competitors, including three offers rejected by Segro’s board. Its leadership publicly called the previous offers “opportunistic,” claiming Prologis was exploiting temporary market disruption. The stateside REIT shot back, calling the board’s own valuation “aspirational.” 

The successful fourth bid hinged, in part, upon Prologis applying for a secondary listing on the London Stock Exchange. 

“We have great respect for Segro, its people and the business they have built over many years,” Daniel Letter, CEO of Prologis, said in a statement. “The constructive engagement between our leadership teams throughout this process has reinforced our confidence in the opportunity ahead.”

Emily Davis can be reached at edavis@commercialobserver.com.