Prologis presses SEGRO merger case after talks stall in London

Prologis, Inc. (NYSE: PLD) said talks with SEGRO plc in London failed to provide clarity on a path toward a recommended transaction, as the U.S. warehouse real estate company continues to pursue a possible combination with the UK-listed property group.

According to a statement issued July 21, 2026, Prologis said its revised proposal values SEGRO shares at 993 pence on a see-through basis, representing a 9.7% premium to SEGRO's pro forma adjusted net asset value of 905 pence per share as of June 30, 2026. The proposal involves an exchange of 0.0890 new Prologis shares per SEGRO share, alongside a partial cash alternative.

Prologis noted that SEGRO's NAV declined from 925 pence to 905 pence per share in the six months to June 30, 2026, and that SEGRO's total property portfolio was valued at £19.0 billion as of December 31, 2025, with £16.7 billion in completed assets at an EPRA Net Initial Yield of 4.2%. The UK 10-year Gilt stood at 5.04% at market close on July 20, 2026.

Prologis argued that analyst consensus forecasts imply SEGRO earnings per share growth of only 4.7% annually through 2028 and 6.4% through 2030, based on SEGRO's own guidance of 50 pence EPS by 2030. Prologis said that applying SEGRO's pre-offer price-to-earnings multiple of 19.3x to the 2030 EPS figure implies an undiscounted share price of 964 pence in four years.

Prologis also said that SEGRO's rejection of its March 2024 proposal, which it said occurred within 72 hours, has left SEGRO shareholders 36.5% worse off in value terms based on its calculations.

Under the UK City Code on Takeovers and Mergers, Prologis must by 5:00 pm London time on July 22, 2026, either announce a firm intention to make an offer or confirm it does not intend to proceed. The company stated there is no certainty that a formal offer will be made and that it remains open to further engagement.

The announcement does not constitute a firm offer under Rule 2.7 of the Code.

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