Segro's board has reversed its position and said it would recommend shareholders accept a £14bn takeover by US rival Prologis, in what would be one of the largest foreign takeovers of a UK-listed company.
Key facts
- Segro's board has U-turned and now recommends accepting a £14bn takeover by US rival Prologis.
- The board said it had 'unanimously concluded' to recommend the offer to shareholders.
- Prologis called the bid its 'best and final offer', made just hours before a deadline.
- The deal would be one of the largest foreign takeovers of a UK-listed company, according to the Guardian.
The board of the UK warehouse landlord Segro has reversed its earlier stance and said it would be willing to accept a £14bn takeover by its larger US rival, Prologis, according to the Guardian.
In a statement, Segro said its board had ‘unanimously concluded’ that it would recommend shareholders accept what Prologis described as its ‘best and final offer’. The Guardian reports that offer was made just hours before a deadline.
If completed, the deal would rank as one of the largest foreign takeovers of a UK-listed company, the Guardian said.
The paper framed the development as the latest blow to the troubled London stock market, which has seen concerns raised over the appeal of UK-listed companies to investors.
The U-turn marks a significant shift from the board’s previous position, with the unanimous recommendation now clearing a key hurdle for the transaction to proceed to shareholders.
Why it matters
A £14bn acquisition of Segro by a US rival would be one of the biggest foreign takeovers of a UK-listed company, adding to concerns about the strength and appeal of the London stock market. Deals of this scale can reshape ownership in the UK's warehouse and logistics property sector.
Frequently asked questions
How much is the Prologis takeover offer for Segro worth?
According to the Guardian, the takeover offer is worth £14bn.
Has Segro's board agreed to the deal?
Segro said its board had 'unanimously concluded' it would recommend that shareholders accept the offer, reversing its earlier position.
Why is the deal significant?
The Guardian reports it would be one of the largest foreign takeovers of a UK-listed company and represents another blow to the troubled London stock market.