Segro has rejected a third, enhanced takeover proposal from Prologis Inc., valued at approximately £13.5 billion ($18.2 billion), according to filings and statements from both companies. The rejection, disclosed on 17 July, marks the third time in under a month that the UK's largest listed logistics REIT has turned down the San Francisco-based industrial landlord's overtures.
The saga began on 16 June when Prologis sent an unsolicited all-share proposal to Segro's board at 925 pence per share, valuing the company at £12.6 billion ($16.6 billion). The exchange ratio of 0.084 new Prologis shares per Segro share, based on a Prologis closing price of $145.30 and a GBP:USD rate of 1.32, would have given Segro shareholders roughly 10.5% of the combined group. Segro's board rejected the approach unanimously on 23 June. Prologis went public with the bid the following day.
What followed was a pattern of escalation and rebuff. A second, improved proposal was rejected on 12 July. The third bid, raising the implied valuation to roughly £13.5 billion — approximately 7% above the original offer — was dismissed on 17 July. In each instance, Segro's board described the bids as falling "a long way short" of the company's intrinsic value and characterised the approach as "opportunistically timed," designed to exploit a "disconnect between Segro's current share price and its highly attractive underlying business and strong prospects."
The strategic logic for Prologis is straightforward. Segro's portfolio combines prime logistics assets across the UK and Europe with a growing pipeline of data-center-capable sites — an increasingly valuable combination as demand for both warehouse space and hyperscale digital infrastructure continues to accelerate. A combined platform would cement Prologis's dominance in European logistics while providing immediate exposure to data-center real estate, an adjacent asset class where land scarcity is becoming a competitive advantage.
Market reaction has been telling. Segro shares surged approximately 15.5% to 857 pence when the initial bid was made public, a move that narrowed but did not close the gap to the 925 pence offer price. The jump reflected a broader re-rating of UK-listed logistics REITs, many of which have traded at persistent discounts to net asset values amid elevated interest rates. The initial offer itself merely matched Segro's reported EPRA net tangible asset value of around 925 pence per share at year-end 2025 — a metric the board has argued understates the company's growth prospects.
The clock is now ticking. Under Rule 2.6 of the UK Takeover Code, Prologis must by 5:00 p.m. London time on 22 July either announce a firm intention to make an offer or confirm that it does not intend to proceed, triggering "put-up-or-shut-up" restrictions. Prologis has publicly urged Segro shareholders to press the board to engage — a tactic that typically signals willingness to consider a hostile route if management resistance continues. Whether it commits to a formal offer or walks away, the outcome will set the tone for cross-border property M&A in the second half of 2026.
Source: Bisnow
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