Logistics Takeover Battle
Segro Rejects £12.6 Billion Prologis Takeover, US Logistics Giant Pushes for Talks
Key Points
Berkeley Group reported NAV per share of GBP39.17 as of April 30, up from GBP35.95 a year earlier, with pretax profit down 15% to GBP451.4m and revenue down 4.2% to GBP2.38bn; executive Rob Perrins attributed the performance to the Berkeley 2035 strategy, disciplined cost control and resilience to macro-economic and regulatory conditions.
Segro’s shares last traded at 742.00 pence, down 0.30% at the latest close, illustrating continued market sensitivity to the approach.
The indicative all-share proposal implies 925 pence per Segro share, equating to a 24.7% premium to Segro’s closing price on the prior day.
Prologis would be the world’s largest logistics REIT with a market capitalization of about USD 140.9 billion on closing, underscoring the scale of the proposed combination.
TG Jones’s restructuring news highlights that some creditors, including Help for Heroes, may lose at least half of what they are owed, with Guardian reporting ongoing creditor risk and potential administration if amended terms are not approved.
US logistics giant Prologis has gone public with a rejected £12.6 billion all-share takeover bid for FTSE 100 warehouse landlord Segro, sending Segro's shares surging 16% to 859.60 pence in early London trading on June 24. The offer values each Segro share at 925 pence — a 24.7% premium to its June 23 closing price of 742 pence — and would give Segro shareholders roughly 10.5% of the combined group, according to StreetInsider.
Segro's board "unequivocally" rejected the proposal on June 23, saying it undervalued the company's long-term prospects. Prologis then went public with the terms to pressure Segro's directors to engage. A UK takeover rule known as "put up or shut up" means Prologis must either announce a firm bid or walk away by July 22, according to City AM.
Why Prologis Wants Segro and What It's Offering
Prologis is the world's largest logistics real estate investment trust, with a market cap of about $140.9 billion. It argues that buying Segro would create an unrivalled global warehouse giant and "unlock significant upside" for Segro shareholders. The deal terms: 0.084 new Prologis shares for every Segro share, implying 925 pence per share. That also represents a 26.7% premium to Segro's one-month average price and a 31.4% premium to its three-month average, per StreetInsider.
Analysts at Stifel called it a "close strategic fit," noting Prologis's 1.1 billion square foot global portfolio. The deal would give Prologis a strong foothold in European "last mile" logistics — the final leg of delivery to homes and businesses — where Segro is a dominant player, according to Investing.com. The broader UK real estate sector rallied on the news, with the FTSE 350 Real Estate index jumping 5.2%. Peer companies British Land, Landsec, and Tritax each gained between 3% and 5.5%.
Segro Says the Price Is Too Low to Engage
Segro's board is not budging. Directors say the 925 pence offer only matches the company's net tangible assets from December 2025. That means Prologis is offering fair value for what Segro owns today — but nothing extra for its future growth in data centers and e-commerce warehousing. Some investors call the bid a "lowball" that leaves out the premium Segro deserves for its development pipeline, per Morningstar.
Becoming a 10.5% minority in a US-dominated group is also a concern. Critics argue Segro's standalone strategy gives its shareholders better long-term returns than being a small slice of a much larger American company. The Evening Standard reported that analysts are watching whether Prologis will need to raise its offer into the 975 to 1000 pence range to bring Segro's board to the table before the July 22 deadline.
London's Takeover Wave and the 'London Discount'
This bid is part of a broader wave of foreign buyers targeting UK-listed companies. International acquirers are taking advantage of what analysts call the "London discount" — the idea that UK stocks trade below their true value compared to peers in the US and Europe. Recent examples include a £4.74 billion bid for easyJet by Castlelake and a £9.5 billion takeover of Intertek by EQT, per The Evening Standard.
Prologis's advisers on the deal are Rothschild & Co, J.P. Morgan, and Eastdil Secured, with law firm Linklaters handling legal work. The all-share structure is common in REIT mergers because it helps both sides keep their tax-efficient status. Proactive Investors noted that the public disclosure of the rejected bid is itself a pressure tactic — forcing Segro's board to justify its stance directly to shareholders.
Berkeley Group Results and TG Jones Creditor Pain Add to Market Noise
Away from the Segro drama, Berkeley Group reported full-year results showing net asset value per share of £39.17, up from £35.95 a year earlier. But pretax profit fell 15% to £451.4 million and revenue dropped 4.2% to £2.38 billion. Executive chair Rob Perrins credited the "Berkeley 2035 strategy" and called for lower stamp duty to help the housing market, per Morningstar.
Also in the news: the restructuring of TG Jones, the former WH Smith travel retail unit, is causing real pain for creditors. Charities including Help for Heroes could lose more than half of what they are owed. The company's CEO warned of insolvency if a restructuring plan fails to get court approval by June 29, according to The Guardian. The situation underlines the wider shift in retail fortunes — away from high street shops and toward the warehouses that Segro and Prologis both prize.
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