American warehousing giant Prologis put forward what it described as its best and final offer to acquire British competitor Segro on Wednesday, placing the deal’s value at roughly £14 billion — approximately $18.8 billion — in a last-minute move just before a regulatory deadline expired.
Segro’s stock climbed more than 4% to £9.07 by mid-morning trading in London, though that figure still fell short of the newly proposed purchase price of £10.32 per share.
The revised offer includes 0.0920 shares of Prologis stock along with a partial cash option of up to £3.5 billion, and it leaves open the possibility of a secondary listing on the London Stock Exchange. The proposal represents an upgrade from a third offer that Segro had turned down just two days earlier on Monday.
In a formal statement, Prologis declared, “The Best and Final Proposal is final and will not be increased,” though the company noted it could revisit that position under certain exceptional circumstances.
The bid represents a 45% premium over the price of Segro shares on the day before Prologis publicly revealed its interest, which was June 24.
Segro has consistently maintained that previous bids failed to reflect its true value, and the company has been rejecting advances from Prologis since as far back as March 2024.
If completed, the transaction could rank among the largest foreign acquisitions of a UK-listed company on record, according to data from LSEG, and would add to an already historic pace of deal activity in Britain.
Before Prologis announced its improved offer, Segro issued a statement saying: “We met and engaged with Prologis over the weekend and have been clear that we would consider and engage again on a revised proposal.”
Both companies have significant footprints in the logistics and real estate sectors. Segro controls roughly 10.9 million square metres of space spread across Europe, while Prologis counts major corporations such as Amazon, FedEx, and UPS among its clients. Both firms have also been developing data center projects aimed at capitalizing on the rapidly growing artificial intelligence industry.
Prologis confirmed it had asked regulators for an extension beyond the 4:00 p.m. GMT Wednesday deadline to formally put forward a takeover offer.
Pressure from investors played a notable role in pushing the two sides toward continued dialogue. Shareholders including APG Asset Management, Norges Bank, and CCLA Investment Management all called on the companies to engage in talks, arguing that a combined entity would create significant value. APG and Norges Bank rank among the top three shareholders in Segro and also hold positions in Prologis, while CCLA holds a smaller stake in Segro.
Analyst Frederic Renard of Kepler Cheuvreux had previously noted that an offer above £10 “may still fall short of Segro’s board’s expectations but could encourage more shareholders to publicly express their views.”
Segro and the major investors had not yet responded to requests for comment on the latest proposal at the time of publication.
