Prologis has said it is “disappointed” by the failure of discussions with SEGRO’s board over a potential takeover of the UK firm.
SEGRO North Feltham, London
The US warehousing firm met with SEGRO on Sunday (19 July) after its third bid – valued at £13.5bn – was rejected just days earlier.
Prologis said the meeting was not to present a revised offer, but to come to an understanding of “whether there was a credible path to a transaction capable of recommendation by the SEGRO board”.
But it added that the talks did not provide “meaningful clarity”.
The update in the long-running takeover saga comes one day ahead of the 22 July deadline for Prologis to announce a firm intention to make an offer.
SEGRO’s board remained adamant that the company’s growth opportunities would deliver superior value for shareholders.
The UK REIT’s stance is largely determined by its belief in the potential of its growing data centre arm – which one activist investor previously said should be spun off into a separate business.
SEGRO has built a 3.0GVA power bank across Europe. The REIT has focused on de-risking its data centre strategy through its ownership of rare urban land holdings, reserved power supplies, favourable planning positions and a proven capital- and resource-efficient joint venture (JV) development model.
SEGRO’s first fully fitted project, a joint venture with Pure Data Centres Group at Premier Park, is progressing, while the REIT recently announced a second JV with Pure in Paris, for which the REIT said it had secured a power supply.
Prologis has argued that SEGRO’s reliance on JVs to develop data centres is a weakness when it comes to accessing capital. In response, SEGRO said: “Prologis has relied extensively on JV partners to deliver US data centres, with three of the four sites highlighted in its investor presentation dated 9 July 2026 developed alongside Skybox.”
Prologis’s argument for a takeover centres around SEGRO trading at a discount to its net tangible assets. The US firm said this was “not because of temporary market dislocation, the conflict in the Middle East or other factors cited by the SEGRO board, but because the consensus forecast earnings for SEGRO on a standalone basis imply only 4.7% annual growth over the next three years and 6.4% through 2030”.
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