Prologis, Inc. has reached an agreement to acquire UK-based industrial landlord Segro plc in an all-stock transaction valued at approximately US$18.8 billion. The deal follows Prologis’ pursuit of Segro since at least early 2024 and marks a significant expansion of the company’s European logistics platform.
Prologis, headquartered in San Francisco, is already a major global industrial real estate owner and operator. By combining with Segro, described as Europe’s largest industrial real estate landlord, Prologis expects to meaningfully scale its presence across the continent. The transaction will create a European operating portfolio totaling 368 million square feet, representing a 47% expansion of Prologis’ existing European footprint.
On a combined basis, Prologis and Segro are expected to oversee approximately US$269 billion in assets under management. The enlarged platform is positioned to serve a broad base of logistics and industrial customers across multiple European markets, while integrating Segro’s regional footprint into Prologis’ global operating infrastructure.
Under the terms of the recommended acquisition, Segro shareholders will receive 0.0920 new Prologis shares for each Segro share they hold. Investors will also have the option to elect cash in lieu of some or all of their Prologis share consideration, subject to the terms and mechanics set out in the transaction agreement. The structure keeps the consideration primarily equity-based while allowing some flexibility for Segro shareholders seeking cash.
Prologis CEO Daniel S. Letter framed the acquisition as a strategic combination of complementary strengths. He said the agreement with Segro’s board is expected to create meaningful value by pairing Segro’s portfolio and customer relationships with Prologis’ global platform, operating capabilities and balance-sheet capacity. Letter also emphasized the company’s respect for Segro’s management team and the business it has built, citing constructive engagement between the two leadership groups throughout the process.
Segro’s portfolio extends beyond the UK, with ownership and operations across a wide swath of continental Europe. The company holds industrial and logistics properties in the Czech Republic, France, Germany, the Netherlands, Italy, Poland and Spain, giving Prologis immediate scale in key European distribution corridors once the deal closes.
The acquisition remains subject to customary closing conditions and approvals and is expected to be completed in the first half of 2027. Until closing, Prologis and Segro will continue to operate independently, while preparing for integration of their European industrial platforms into a single, larger logistics real estate enterprise.
