Photo via FreightWaves
Prologis, a major operator in the logistics real estate sector, announced Monday that its latest attempt to acquire London-based competitor Segro has been rebuffed. The enhanced bid, valued at $18.2 billion, marks the third formal proposal from the U.S.-based company seeking to combine with its British peer. According to FreightWaves, Segro's board determined that the offer did not meet the company's valuation expectations or strategic objectives.
The rejection underscores the significant valuation gap between the two logistics property firms, with Segro maintaining that Prologis' successive bids undervalue the company's portfolio and growth prospects. The back-and-forth between the two logistics real estate operators highlights broader consolidation pressures in the sector, as rising interest rates and changing supply chain dynamics reshape the competitive landscape.
The continued rejection suggests that any successful acquisition would require a substantially higher offer or a fundamental shift in Prologis' approach to the deal structure. With Segro's firm stance on its valuation, the prospects for further negotiations remain uncertain without a material change in the offer terms.