The U.S. warehouse landlord Prologis announced it will buy U.K. rival Segro for 18.81 billion pounds, a deal that lifts Prologis’s European presence. The offer represents a 39% premium over Segro’s closing price before the June disclosure.

Under the terms, Segro shareholders will receive 0.0920 newly issued Prologis shares for each Segro share, plus a cash option of up to £3.51 billion. The cash alternative is capped at £3.51 billion, ensuring liquidity for cash‑heavy shareholders. Segro’s board will recommend the offer unanimously.

The purchase values Segro at £10.317 per share, reflecting the premium. The valuation aligns with sector trends, as demand for distribution centers has surged amid e‑commerce growth. The share‑swap structure allows investors to convert their holdings into Prologis equity, expanding the company’s global footprint.

The transaction underscores Prologis’s strategy to grow in the European warehouse market, while giving Segro shareholders a lucrative exit. Analysts say the deal could reshape the logistics landscape across the U.K., U.S., and Europe.