Prologis has agreed to acquire SEGRO for approximately $18.8 billion, combining the logistics real estate platform with
Prologis, Inc. announced on August 4, 2026 that it has reached agreement with the board of SEGRO plc on the terms of a recommended acquisition valuing SEGRO's entire issued and to be issued ordinary share capital at approximately $18.8 billion. Daniel S. Letter, chief executive officer of Prologis, stated: "We are pleased to have reached agreement with the SEGRO Board on a combination that we believe will create meaningful value. This deal brings together SEGRO's exceptional portfolio and customer relationships with Prologis' global platform, operating expertise and financial strength. We have great respect for SEGRO, its people and the business they have built over many years. The constructive engagement between our leadership teams throughout this process has reinforced our confidence in the opportunity ahead."
Under the terms of the recommended acquisition, SEGRO shareholders will receive 0.0920 new Prologis shares for each SEGRO share. Shareholders may elect to receive cash in lieu of some or all of their Prologis share consideration, subject to a partial cash alternative. SEGRO shareholders will also be entitled to receive and retain any 2026 interim dividend of up to 10.14 pence per SEGRO share and any 2026 final dividend of up to 22.56 pence per SEGRO share, which SEGRO intends to pay prior to closing.
The maximum aggregate amount of cash available under the partial cash alternative is approximately £3.5 billion. Each SEGRO shareholder's basic entitlement under the partial cash alternative is equal to 25 percent of the fixed price of 1,031.7 pence per SEGRO share. Accordingly, a shareholder electing to receive only its basic entitlement would receive 258 pence in cash and 0.0690 new Prologis shares for each SEGRO share. Shareholders may elect to receive less than or more than their basic entitlement, and elections to receive cash in excess of the basic entitlement will be scaled back on a pro rata basis if aggregate cash elections exceed the maximum available. The cash consideration will be funded through a committed term loan facility, together with existing liquidity and other available sources of funding.
The combination is expected to enhance Prologis' long-term earnings and return potential. In the first full year following completion, assuming annualized run-rate synergies, the combination is expected to have a broadly neutral to minimally dilutive impact on Core FFO per share and AFFO per share. Prologis expects to maintain A2/A credit ratings from Moody's and S&P.
The boards of both Prologis and SEGRO have reached agreement on transaction terms, and the SEGRO board unanimously intends to recommend it. The transaction is expected to close in the first half of 2027, subject to the requisite approvals of SEGRO shareholders, sanction of the scheme by the court, receipt of applicable regulatory approvals and satisfaction of customary closing conditions. The transaction does not require approval by Prologis shareholders.
As part of the transaction, Prologis will apply for a secondary listing of its shares on the London Stock Exchange, with the approval of that application being a condition to completion.