U.K.'s Segro Rejects Sweetened $18.2 Billion Prologis Bid — 2nd Update

By Adam Whittaker

Segro rejected a sweetened third takeover offer from Prologis valuing the British industrial real-estate company at around 13.5 billion pounds, equivalent to $18.16 billion, but left the door open to improved future bids.

Prologis--the world's largest owner of industrial real estate--said Monday that its third offer was rejected on Friday following a second approach that was rebuffed on July 12.

Segro's board unanimously rejected the bids, saying its growth strategy and standalone prospects offered better value for shareholders. Prologis didn't provide information on its ability to improve the offer, Segro said.

However, the London-listed company said it was open to engaging further with Prologis if an improved offer were to be made.

Segro previously described Prologis's first offer as opportunistically timed, and aimed at taking advantage of a dislocation between its share price and its prospects, accentuated by geopolitical turmoil.

Prologis said the third offer is compelling for both sets of shareholders and urged Segro shareholders to encourage their board to recommend the combination.

The U.S. company's offers follow a flurry of trans-Atlantic dealmaking and some high-profile names on the London Stock Exchange leaving the bourse.

Rental company Ashtead canceled its main London listing in March, while FanDuel owner Flutter Entertainment's is due to delist from the exchange at the end of the month.

Meanwhile, easyJet this month agreed in principle to a potential $7.6 billion takeover by U.S. asset manager Apollo while food-and-beverage ingredients maker Ingredion reached a deal to take over U.K. rival Tate & Lyle.

Prologis said its third proposal included a 2.7 billion-pound cash component, representing 20% of the total offer, and 0.0890 new Prologis shares for each Segro share, a 6% increase on the initial proposal.

Based on its own stock's closing price of $149.79 on Friday, and assuming Segro shareholders opt for the 20% cash component, the third proposal values each Segro share at 993 pence, Prologis said. This represents a 34% premium to Segro stock's closing price on June 23, before the first offer was made.

Segro shares were down 1% in midmorning trade at 888.40 pence.

Under the terms of Prologis's third offer, and assuming the cash consideration were fully accepted, Segro shareholders would hold a roughly 9.2% stake in Prologis, it said.

Prologis said Monday that it would consider a secondary listing of its shares on the London Stock Exchange should there be sufficient demand from investors.

The deal would have been Prologis's largest since it bought Duke Realty for $26 billion, including debt, in 2022. Through that acquisition, the San Francisco-based company grew its exposure to e-commerce. It has recently been looking to expand its data-center footprint to capitalize on artificial-intelligence demand.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

July 20, 2026 06:08 ET (10:08 GMT)