The wave of overseas takeover interest in British companies has reached another landmark with warehouse developer Segro rejecting a £12.6bn approach from US logistics property giant Prologis.
The unsolicited proposal, which valued the FTSE 100 group at 925p a share, is the latest sign of how international investors continue to view London-listed companies as attractive acquisition targets despite a broader recovery in UK equity markets.
For Prologis, the world’s largest logistics real estate investment trust, the strategic rationale is straightforward. Combining its global portfolio with Segro’s extensive network of urban warehouses and distribution hubs would create an even more dominant force in one of the most sought-after segments of commercial property.
For Britain, however, the approach raises familiar questions about the attractiveness of the London market and the persistent valuation gap between UK-listed companies and their international peers.
Segro occupies a particularly valuable position within European logistics real estate.
The company owns and manages warehouses serving major population centres across the UK and continental Europe, benefiting from long-term trends including e-commerce growth, supply-chain restructuring and demand for last-mile delivery infrastructure.
These assets have become increasingly important as businesses seek to improve resilience following years of disruption caused by the pandemic, geopolitical tensions and shifting trade patterns.
Prologis believes a combination would create substantial value through scale, operational efficiencies and enhanced access to capital.
The US group argued that Segro shareholders would gain exposure to a significantly larger global platform with a market capitalisation exceeding $140bn.
Yet Segro’s board appears unconvinced that the proposal adequately reflects the long-term value of its portfolio and future growth prospects.
The bid arrives amid growing concern about the number of UK companies falling into foreign ownership.
Just days earlier, laboratory testing group Intertek agreed to a £9.5bn takeover by Swedish private equity investor EQT. Meanwhile, easyJet recently rejected an approach from US investment firm Castlelake, arguing that the proposal significantly undervalued the airline.
These deals are fuelling debate over whether London-listed businesses continue to trade at a discount compared with international competitors.
While UK equities have recovered from the extreme valuation lows seen in recent years, many institutional investors continue to argue that British companies remain comparatively inexpensive.
That perception has created opportunities for overseas buyers armed with stronger currencies and larger pools of capital.
The interest in Segro also reflects improving sentiment towards logistics property.
After a difficult period marked by rising interest rates and falling property valuations, investors have begun reassessing the sector’s longer-term fundamentals.
Demand for modern warehousing remains robust, while supply constraints in key urban locations continue to support rental growth.
For global investors seeking exposure to structural themes such as online retailing, automation and supply-chain modernisation, logistics assets remain among the most attractive areas of commercial real estate.
By publicly disclosing its approach, Prologis has effectively taken its case directly to Segro investors.
The unusual move places pressure on the board while testing whether shareholders agree with management’s assessment of the company’s value.
Under UK takeover rules, Prologis now has until July 22 to submit a firm offer or walk away.
Whether a higher bid emerges may depend on investor reaction over the coming weeks.
Regardless of the outcome, the approach serves as another reminder that overseas acquirers continue to view Britain’s public markets as fertile hunting ground.
For London, that may reflect confidence in the quality of UK businesses. But it also highlights a more uncomfortable reality: many international buyers still believe they can acquire those businesses more cheaply than they should be able to.
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