British warehouse developer Segro has agreed to a £14 billion takeover by US industrial property giant Prologis, bringing to an end a protracted pursuit that underscores the growing appetite of overseas buyers for UK-listed companies whose valuations continue to lag international peers.
The board of the FTSE 100 landlord recommended Prologis’s improved offer after previously rejecting three approaches, including a £13.5 billion proposal. The final deal values Segro shares at 1,032p each, with shareholders receiving the bulk of the consideration in Prologis stock alongside £3.5 billion in cash.
The acquisition marks one of the largest UK property transactions in recent years and reflects the enduring appeal of logistics assets, which have become increasingly central to global supply chains, e-commerce and the rapid expansion of data centre infrastructure.
For Prologis, already the world’s largest logistics property owner, the acquisition significantly strengthens its European footprint while adding Segro’s portfolio of high-quality urban warehouses and extensive development pipeline. The enlarged company also plans to seek a secondary listing in London, preserving a link to UK capital markets despite the business coming under American ownership.
The agreement follows weeks of negotiations after Prologis declared its latest proposal to be its “best and final” offer, increasing pressure on Segro’s board to deliver value for shareholders amid a wave of overseas acquisitions targeting London-listed businesses.
Chief executive David Sleath said both companies shared a long-term conviction in the structural demand for modern logistics facilities and data centres, arguing the combination would create a stronger platform capable of serving multinational customers while maintaining disciplined capital allocation.
Prologis chief executive Daniel Letter said the discussions had reinforced the strategic logic of the transaction and praised the quality of Segro’s management and assets.
The deal adds to mounting concerns over the vulnerability of UK public companies to foreign takeovers. While shareholders have been rewarded with a premium offer, another flagship British business is set to pass into overseas ownership, highlighting persistent questions over whether London’s equity market continues to undervalue some of its most strategically important companies.
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