Segro rejects Prologis' £13.5 billion sweetened takeover bid

Segro rejected Prologis' second sweetened takeover proposal valuing the British warehouse landlord at £13.5 billion ($18.18 billion), the U.S. logistics giant said Monday.

"Segro's board unanimously concluded that the proposal was opportunistically timed and significantly undervalued the company and its standalone prospects," Prologis said in a statement, disclosing the rejection.

The third proposal valued Segro at £9.93 per share, comprising 0.0890 new Prologis shares for each Segro share plus a partial cash alternative of as much as £2.7 billion. The initial all-share approach in June was valued at £12.6 billion and met the same fate.

The rejection leaves Prologis, the world's largest industrial real estate owner by market capitalization, with limited options. It could return with a higher offer, potentially triggering a UK Takeover Panel deadline, or walk away, leaving Segro to pursue its development pipeline independently. The standoff highlights the widening valuation gap between U.S. and European logistics landlords as e-commerce demand reshapes warehouse markets on both sides of the Atlantic. UK-listed industrial REITs have traded at a discount to their U.S. peers, with Segro's price-to-book ratio trailing Prologis' by a wide margin, making British assets an attractive target for American buyers seeking exposure to European last-mile logistics.

Segro owns and manages roughly 10 million square meters of warehouse space across the UK and continental Europe, with a development pipeline focused on urban logistics hubs near major population centers. Prologis, which already operates across 19 countries, would have gained a dominant position in UK industrial real estate through an acquisition.

This article is for informational purposes only and does not constitute investment advice.