Segro board accepts £14bn takeover bid from US rival Prologis

The board of UK warehouse landlord Segro has reversed its earlier stance and agreed to recommend a £14bn takeover bid from US rival Prologis, marking one of the largest foreign acquisitions of a British-listed company. The decision represents a blow to the London stock market, which has struggled to retain domestic firms amid a wave of overseas takeovers.

Segro shareholders are affected by the deal, as the board is now urging them to accept what Prologis has called its “best and final offer,” submitted just hours before a deadline. The offer values Segro at approximately £14bn, making it a significant transaction in the industrial property sector.

The U-turn matters because it underscores the vulnerability of UK-listed companies to foreign takeover bids, particularly from larger US competitors. The deal could further diminish the size and prestige of the London market, which has already seen several high-profile departures or acquisitions in recent years.

Segro announced in a statement that its board had “unanimously concluded” to recommend the offer to shareholders. The bid from Prologis, a US-based industrial real estate investment trust, was described by the suitor as its final proposal. No specific deadline for shareholder acceptance was provided in the source.

Background: The London stock market has faced challenges retaining companies, with several firms either moving their primary listings abroad or being acquired by foreign entities. This trend has raised concerns about the competitiveness and attractiveness of the UK as a listing destination.

Next steps: Segro shareholders will now vote on whether to accept the offer. If approved, the deal would proceed to regulatory and other customary approvals, potentially closing later this year. The outcome could influence future takeover activity targeting UK-listed firms.