Segro rebuffs Prologis’ £13.5bn approach

Segro rejects Prologis’ latest takeover proposal

SEGRO has turned down a renewed takeover approach from Prologis that values the UK logistics landlord at approximately £13.5 billion. The Third Proposal was submitted on 16 July 2026 and rejected by SEGRO’s board on 17 July 2026, marking the latest step in an ongoing pursuit. The board’s decision leaves Prologis without a recommended transaction as a key regulatory deadline approaches.

The Third Proposal follows two earlier approaches made after Prologis first announced its interest in SEGRO on 24 June 2026. Prologis’ second proposal was made on 10 July 2026 and rejected on 12 July 2026, before the latest, sweetened terms were put forward. Despite these successive revisions, SEGRO’s directors have so far declined to engage on the basis proposed.

Structure and value of the Third Proposal

Under the latest terms, SEGRO shareholders would receive 0.0890 new Prologis shares for each SEGRO share. In addition, Prologis has offered a Partial Cash Alternative of up to £2.7 billion, representing 20% of the total consideration, at a fixed price of 1,000 pence per SEGRO share. The cash element would be subject to pro‑rata scale‑back if aggregate elections exceed the available pool.

Based on Prologis’ closing share price of $149.79 and a GBP:USD exchange rate of 1.3445 on 17 July 2026, and assuming a shareholder elects for the full 20% cash option, the proposal values each SEGRO share at 993 pence. On this basis, Prologis estimates the value of SEGRO’s issued and to‑be‑issued share capital at roughly £13.5 billion. The blended cash‑and‑stock structure is designed to give SEGRO investors exposure to the combined group while offering partial liquidity.

Prologis’ campaign to win shareholder support

Alongside the revised terms, Prologis has published a new investor presentation outlining its rationale for combining the two logistics property groups. The materials set out Prologis’ view of the strategic and financial benefits of a transaction. Prologis is encouraging SEGRO shareholders to ask the SEGRO board to recommend the combination on these terms.

Prologis has also indicated that, if the transaction proceeds and there is sufficient investor demand, it would explore a possible secondary London listing of its shares. Such a listing would aim to give UK and European investors easier access to Prologis stock after any combination. This potential step is presented as part of the overall package being offered to SEGRO’s investor base.

Impending UK Takeover Code deadline

The negotiations are taking place under the framework of the UK Takeover Code. Under Rule 2.6(a), Prologis must, by no later than 5:00 pm (London time) on 22 July 2026, either announce a firm intention to make an offer for SEGRO or state that it does not intend to do so. This deadline can only be extended with the consent of the UK Takeover Panel.

The timetable creates a narrow window for any further engagement between the parties or for Prologis to adjust its approach. If Prologis does not announce a firm intention to make an offer by the deadline and no extension is granted, it would be required to step back from pursuing SEGRO for a period set out in the Code. The coming days are therefore likely to determine whether the current bid evolves into a formal offer or comes to an end.