Segro rejects £12.6bn takeover bid from US data centre rival Prologis

Segro has rejected an all-share takeover approach from US logistics and data centre rival Prologis that valued the London-listed landlord at £12.6 billion, setting up a short window for the bidder to improve its terms or walk away.

The proposal was made on June 16 and rejected by Segro’s board on June 23, according to reporting published on June 24. Under UK takeover rules, Prologis now has until July 22 to announce a firm offer or withdraw.

The approach implied a value of 925p a share and a premium of 24.6% to Segro’s previous closing price. It would have been an all-share deal, with Segro holders receiving Prologis stock rather than cash.

The proposal

Prologis said the proposal would have given Segro shareholders exposure to a larger global logistics real estate group and its capital base. The US company also argued the deal would help unlock value from Segro’s development pipeline, including its data centre exposure.

The terms reported on June 24 suggested Segro shareholders would have received 0.084 Prologis shares for each Segro share. Prologis also said the structure would leave Segro investors with about 10.5% of the enlarged group.

That ownership split matters because it ties the value of the bid directly to Prologis’s equity performance rather than setting an immediate cash exit for Segro holders.

Why Segro said no

Segro said its board unanimously and unequivocally rejected the proposal because it fell a long way short of what the company believes its business is worth.

The company said the bid was opportunistically timed and attempted to exploit a dislocation in its share price. It also said geopolitical issues have depressed UK and European real estate valuations relative to the US, which it views as part of the valuation gap.

Segro’s position is rooted in its portfolio and pipeline. The company is best known for warehouses and logistics assets, but it also has data centre exposure and a development pipeline that management believes supports a higher valuation than the bid implied.

The board’s rejection was firm enough to close off any sense that the first approach could be accepted in its existing form. The next phase now depends on whether Prologis chooses to improve its offer before the takeover deadline.

Why this matters

Segro is one of the UK’s most prominent logistics and warehouse landlords, so a deal would be a significant transatlantic takeover in a sector that has drawn sustained investor attention.

The bid also fits a broader pattern of US buyers targeting UK-listed companies they see as trading below intrinsic value. For Segro, the stakes are not only about control but also about whether the market is undervaluing a business with both logistics and data centre growth options.

The story has wider implications for UK property valuations as well. A successful approach could have become a reference point for other UK REITs and landlords that continue to trade at a discount to comparable US peers.

Market reaction and next steps

Segro shares rose sharply once the bid became public, trading around 855p to 871p on June 24. That move suggests investors saw the proposal as potentially meaningful even after the board’s rejection.

The immediate question is whether Prologis comes back with better terms before July 22. If it does, Segro shareholders may face renewed debate about whether to back the standalone development pipeline or the value implied by a higher offer.

If Prologis does not return with a firm bid, the approach will lapse under takeover rules. Even then, the episode is likely to remain a marker for how foreign buyers value large UK real estate groups with logistics and data centre exposure.

For now, the board has said no, the market has reacted, and the clock is running toward the July 22 deadline.