A £14bn takeover approach for warehouse developer Segro has reignited questions over the persistent undervaluation of UK-listed companies and intensified calls for reforms aimed at reviving London’s capital markets.
Segro shares jumped 7% after the property group backed a takeover proposal from US logistics real estate giant Prologis, adding to a growing list of British companies attracting overseas bidders eager to exploit depressed valuations.
The latest approach reinforces a pattern that has become increasingly familiar to investors.
International buyers, particularly from the United States, continue to view London’s market as fertile ground for acquisitions, with many UK-listed businesses trading at substantial discounts to global peers despite solid underlying assets and cash generation.
The renewed wave of dealmaking is likely to strengthen pressure on ministers to reconsider the UK’s 0.5% stamp duty on share purchases. The levy is increasingly viewed by market participants as a competitive disadvantage, particularly as most major international exchanges impose no equivalent tax. Supporters argue its removal could improve liquidity, attract new listings and narrow the valuation gap that has made British companies attractive takeover targets.
The transaction also highlights a broader structural shift in capital markets. As the number of publicly listed companies continues to decline, investors are increasingly turning towards private markets for access to fast-growing technology businesses, infrastructure projects and specialist assets that rarely reach public exchanges.
While the rise of private capital has broadened investment opportunities, it has also intensified concerns that public equity markets risk becoming less relevant if high-quality companies continue to disappear through acquisitions.
For policymakers, the proposed Segro deal is more than another takeover. It is another reminder that without reforms to improve market competitiveness, Britain risks seeing an increasing share of its corporate champions acquired at valuations many investors believe fail to reflect their long-term worth.
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