Prologis has announced that it has reached agreement with the board of SEGRO plc on the terms of a recommended acquisition of SEGRO plc, valuing SEGRO’s entire issued and to be issued ordinary share capital at approximately $18.8 billion.

Dan Letter, chief executive officer of Prologis, commented, “We are pleased to have reached agreement with the SEGRO Board on a combination that we believe will create meaningful value. This deal brings together SEGRO’s portfolio and customer relationships with Prologis’ global platform, operating expertise and financial strength. We have great respect for SEGRO, its people and the business they have built over many years. The constructive engagement between our leadership teams throughout this process has reinforced our confidence in the opportunity ahead.”

He also added, “As we move forward, we will approach the work ahead thoughtfully and deliberately. We look forward to building on the strengths of both companies and creating even greater value for our customers and shareholders.”

The combination will bring together two portfolios in a global platform with approximately $269 billion of assets under management; strengthen the customer value proposition through a more connected global network; create a European operating portfolio of 368 million square feet, expanding Prologis’ European footprint by 47%.

They will also establish a combined European development pipeline of 13 million square feet while increasing Prologis’ European land bank by 126% and expand long-term growth opportunities across logistics, energy and digital infrastructure.

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