Prologis has made a final $18.7 billion bid to acquire U.K. rival Segro, sweetening its offer to 14 billion pounds with a 9.5% increase over the initial proposal. The world's largest industrial real estate owner is offering 0.092 new shares for each Segro share tendered, plus a partial cash alternative of up to 3.5 billion pounds representing a quarter of the total price.

Segro shares climbed 4.7% following the announcement. The company did not immediately respond to requests for comment but earlier this week had rejected a previous Prologis proposal while indicating it would engage with an improved bid on the table.

The deal would combine two major logistics property portfolios as e-commerce drives demand for warehouse space. Prologis ruled out further increases, making this its final offer for the London-listed REIT.