Prologis and Segro agree terms to create global logistics real estate leader

Prologis has reached agreement with Segro’s board on the terms of a recommended €17 billion ($18.8bn USD) acquisition, a landmark deal that would combine two of the sector’s most influential industrial and logistics real estate operators into a single global platform.

Prologis

The transaction will bring together Segro’s European portfolio and customer relationships with Prologis’ global operating scale, financial strength and development capabilities. The combined business would oversee approximately €240 billion ($269bn USD)of assets under management and create one of the largest logistics real estate platforms globally.

Prologis said the deal would expand its European operating portfolio to 368 million sq ft, increasing its footprint in the region by 47 percent. The combination would also establish a 13 million sq ft European development pipeline and increase Prologis’ European land bank by 126 percent, supporting long‑term growth across logistics, energy and digital infrastructure.

Under the terms of the acquisition, Segro shareholders will receive 0.0920 new Prologis shares for each Segro share, with the option to elect for partial cash consideration. The maximum cash available under the partial alternative is €4.1 billion (£3.5 bn). Segro shareholders will retain entitlement to the company’s 2026 interim and final dividends.

Prologis chief executive Daniel S. Letter said the combination would create meaningful value by uniting Segro’s exceptional portfolio with Prologis’ global platform and operating expertise. He added that the constructive engagement between the companies reinforced confidence in the opportunity ahead.

The Segro board has unanimously recommended the transaction, which is expected to complete in the first half of 2027 subject to shareholder approval, court sanction, regulatory clearances and customary closing conditions. The deal does not require approval from Prologis shareholders.

As part of the transaction, Prologis will seek a secondary listing on the London Stock Exchange, with approval forming a condition to completion.