Shares of Prologis slid 2.2% to $146.60 as the world's largest logistics REIT put its final card on the table: a "best and final" proposal to buy British rival SEGRO for about £14 billion ($18.8 billion) , setting up the biggest contest for a publicly traded European property company in history. The selloff signals Wall Street is weighing the prize against the price.
• The Bid Keeps Rising, and SEGRO Still Isn't Sold. Prologis hiked its offer to 0.092 new shares for each SEGRO share, a 9.5% increase from its initial proposal last month.
The deal includes a £3.5 billion partial cash alternative — about 25% of total value — at a fixed price of 1,031.7 pence a share. That price sits roughly 11% above SEGRO's adjusted net asset value of 925 pence reported for year-end 2025. Prologis says the proposal is final but has asked SEGRO to seek a deadline extension from UK regulators , a sign it still lacks board support.
• What Prologis Is Really Buying: Europe's Largest Data Center Land Bank. SEGRO controls a 3.0 GVA European data center power bank, including 0.5 GVA of operational capacity and 2.5 GVA of future capacity.
Independent appraisals by CBRE attribute £2.5 billion of value upside to SEGRO's data center pipeline alone, plus £1.6 billion from its logistics development pipeline. For Prologis, which already claims a 5.8 GW power pipeline targeting over 10 GW long-term , absorbing SEGRO would vault it into Europe's data center race almost overnight.
• Prologis Can Afford It — But the Cushion Gets Thinner. Total debt already stands at $36.4 billion with a debt-to-EBITDA ratio of 4.7x. The £3.5 billion cash component would push leverage meaningfully higher. Prologis holds $7.6 billion in liquidity and $112.4 billion in unencumbered assets backing A-rated credit. Still, absorbing nearly $19 billion of deal value on top of existing obligations tests balance sheet discipline — particularly as the company just raised full-year core FFO guidance to $6.22–$6.30 per share following a record leasing quarter.
• SEGRO's Board Has the Leverage — and Knows It. Under the share-exchange terms, existing SEGRO holders would own roughly 8.9% of the enlarged Prologis , diluting current PLD shareholders. Major investors including Norway's sovereign wealth fund are urging both sides to keep talking , but SEGRO has called the approach "opportunistic, one-sided and inadequate." With the deadline pressure now squarely on Prologis and its stock already dipping, the market is pricing in real uncertainty about whether this deal closes — and at what final cost.