Segro has become the latest target in a growing wave of takeover activity after rejecting an unsolicited approach from US logistics property giant Prologis.
Prologis revealed it had submitted a proposal on 16 June valuing Segro at approximately £12.6 billion, equivalent to 925p per share. The offer represented a premium of almost 25% to Segro’s market value before the approach became public.
The proposal was firmly rejected by Segro’s board, with Prologis stating on Monday that its approach had been “unequivocally rejected”.
Despite the rebuff, investors welcomed the news, sending Segro shares up around 15% to 857p. While still below the proposed offer price, the sharp rise suggests the market believes there remains a possibility of further corporate activity.
A combination of Prologis and Segro would create one of the world’s largest logistics and industrial property groups, bringing together extensive warehouse portfolios across Europe, the UK and North America.
Segro has long been viewed as one of the UK’s premier logistics property companies. Originally founded in 1920 as the Slough Trading Company, it transformed a former military repair depot into one of Britain’s earliest industrial estates. Over the past century, the business has evolved into a major owner and developer of warehouses, distribution centres and urban logistics assets.
The company’s growth accelerated during the pandemic as the rapid expansion of e-commerce increased demand for warehouse space and last-mile delivery facilities. Strong occupier demand, limited supply and rising rental values helped drive significant growth in both earnings and asset values.
For Prologis, acquiring Segro would significantly strengthen its position in key European logistics markets and expand its exposure to the UK’s high-demand industrial property sector.
Under UK takeover rules, Prologis will now have a limited period to either make a firm offer or walk away, unless an extension is granted. Investors will be watching closely to see whether the US group returns with an improved proposal or whether Segro remains determined to stay independent.
