Prologis Bid for Segro Raises Takeover Pressure

Prologis, Inc. (NYSE: PLD) has submitted a “best and final” takeover proposal valuing SEGRO plc (LSE: SGRO; OTC: SEGXF) at about $18.8 billion and asked Segro to seek an extension to the U.K. Takeover Panel deadline, focusing a decision for boards and investors by July 22, 2026.

Revised Offer and Terms

Prologis tabled a fourth, non-binding proposal under Rule 2.4 to acquire all issued and to be issued Segro shares. The offer includes 0.0920 Prologis share per Segro share plus an increased partial-cash alternative capped at £3.5 billion. Under this mix, Segro shareholders would retain roughly 9% of the combined company, depending on cash elections.

The prior third proposal offered 0.0890 Prologis share per Segro share plus a partial cash alternative fixed at 1,000 pence per share, capped at £2.7 billion. That approach implied an equity value of about $18.2 billion. Under that proposal, Segro shareholders would have owned about 9.2% of Prologis post-transaction.

Panel Deadline and Reactions

The U.K. Takeover Panel’s “put up or shut up” rule requires Prologis to announce a firm intention to make an offer (Rule 2.7) or withdraw by July 22, 2026, 5:00 pm London time. Prologis has requested Segro seek an extension to allow further talks.

Segro’s board has unanimously rejected the first three proposals as opportunistic and maintains a standalone valuation closer to £18 billion. The company estimates its development pipeline could generate about £900 million in future rents and roughly £4.1 billion in shareholder value, with earnings per share rising from 36.6 pence in 2025 to about 50 pence by 2030.

Major institutional shareholders, including Norges Bank Investment Management and CCLA Investment Management, have publicly urged constructive engagement and said the proposals merit consideration, increasing pressure on Segro’s board to negotiate. Prologis first disclosed a non-binding approach on June 24, 2026, followed by proposals on July 10 and July 16; Segro rejected the second and third offers on July 12 and July 17, respectively.

Segro said it met and engaged with Prologis over the weekend and would consider and engage again on a revised proposal. The takeover contest has shifted from headline terms to a board-level valuation dispute, with the Takeover Panel timetable compressing options and shareholder pressure raising the likelihood of either an extension or a formal Rule 2.7 offer from Prologis.