Segro Board Recommends £14 Billion Sale to Prologis After Fourth Bid Accepted

The board of UK logistics and data center developer Segro has agreed to recommend a £14 billion ($18.6 billion) takeover by US industrial real estate giant Prologis, marking the successful culmination of a four-bid negotiation process. The deal underscores the growing strategic value of data center assets within traditional industrial real estate portfolios, as both companies pivot toward high-growth digital infrastructure.

Segro’s board announced on July 22 that it had unanimously concluded the financial terms of Prologis’ fourth proposal were sufficient to recommend to shareholders. The offer values Segro stock at 1,031.7 pence per share, representing a 12 percent increase from Prologis’ initial £12.6 billion bid, which was rejected alongside two subsequent offers between late June and late July. If completed, Segro shareholders will be entitled to a dividend and will hold approximately 8.9 percent of Prologis shares. Prologis has also indicated it will explore a secondary listing on the London Stock Exchange.

Prologis, a NYSE-listed firm traditionally focused on industrial warehouses and logistics facilities, has been aggressively expanding its data center footprint. The company reports that it has secured commitments from utilities for approximately 5.6GW of power, with a target of up to 10GW of capacity over the next decade. Segro, listed on the London Stock Exchange, has similarly evolved from its industrial warehouse roots, having provided powered shells for data center customers for roughly 20 years, primarily around Slough to the west of London. The firm is now targeting around 3GW of data center developments across major European markets.

The acquisition comes amid growing investor pressure on Segro to unlock value from its data center division. Last month, an activist investor accused the company of "undervaluing" its high-growth data center arm and suggested spinning off a 20-30 percent stake in the Netherlands. Prologis’ earlier all-share proposal in March 2024, which valued Segro at £9.63 per share, was rejected by Segro as “opportunistic.” The current deal, which extends the "put up or shut up" deadline for a firm offer to August 12, 2026, represents a significant premium and a strategic bet on the convergence of logistics and digital infrastructure.