The clock is ticking for US property giant Prologis, which faces a 28-day deadline to table a formal takeover offer for London-listed warehouse operator SEGRO. Under UK Takeover Panel rules, Prologis must either announce a firm intention to bid or walk away by 5pm on 18 August 2026, after confirming it was in preliminary discussions earlier this month.
SEGRO's shares closed at 876p on Friday, up 12% since the approach was made public on 7 July, giving the FTSE 100 constituent a market capitalisation of approximately £12bn. The stock has been one of the best performers on the index this month, outpacing the FTSE 100's modest 1.2% gain over the same period. Analysts at Jefferies noted that the premium already priced in suggests investors expect a bid in the region of 950p to 1,000p per share.
Prologis, headquartered in San Francisco and listed on the New York Stock Exchange, is the world's largest owner of logistics real estate. A combination with SEGRO would create Europe's dominant industrial property group, with a portfolio spanning the UK, Germany, France and Poland. SEGRO's assets include distribution centres in the Midlands, London's Golden Triangle and major European logistics hubs, making it a natural fit for Prologis's expansion strategy.
However, regulatory hurdles could complicate any deal. The Competition and Markets Authority may scrutinise the combined group's market share in key UK regions, particularly around the M25 corridor and the Midlands, where both firms have significant holdings. Property analysts at Stifel warned that a prolonged CMA review could delay the process and potentially force asset disposals.
For UK investors, the bid battle underscores the appeal of British industrial property at a time when e-commerce demand remains robust despite a broader economic slowdown. Pension funds and institutional holders of SEGRO shares face a choice: accept a cash-and-shares offer if Prologis proceeds, or hold out for a higher price. No rival bidder has emerged so far, but property sources suggest other overseas funds are watching closely.