Competition watchdog asks for views on Prologis's £14bn takeover of warehouse owner SEGRO
The CMA has opened a two-week window for comments before deciding whether to start a formal investigation into the US logistics group's purchase of the London-based property company.
By Daily Oracles News Team2 min read
The UK competition regulator has taken the first formal step in its review of Prologis's takeover of SEGRO, the London-based owner of warehouses and industrial property, in a deal worth around £14bn.
The Competition and Markets Authority published an invitation to comment on Tuesday morning. Any business or individual with views on how the deal might affect competition in the UK has until 10 November to send them in. The CMA said it had received the information it needed from the two companies to begin pre-notification discussions, but it has not yet launched its formal investigation.
Two warehouse landlords
SEGRO invests in warehouses and industrial property, the kind of space rented by retailers, delivery firms and manufacturers. Prologis is a logistics property company based in San Francisco with an existing European business. SEGRO said when the deal was agreed that it would pair SEGRO's portfolio and development pipeline with Prologis's European operations and global scale.
The CMA describes the invitation as the first part of its information-gathering. Warehouse tenants and other landlords can both submit evidence.
How the deal was agreed
The takeover followed a contest that began in mid-June, when SEGRO turned down Prologis's first approach. Prologis raised its terms and on 22 July made what it called its best and final proposal. SEGRO's board agreed to recommend it in early August.
Under the terms, SEGRO shareholders receive 0.0920 new Prologis shares for each SEGRO share. They can choose to take up to 25% of their payment in cash, fixed at 1,031.7p a share, with the total cash element capped at £3.5bn. Those values were set using Prologis's share price and exchange rates on 21 July. If the cash option is fully taken up, SEGRO's investors would own about 8.9% of the enlarged Prologis.
At the time it was made, the final proposal was 39% above SEGRO's closing share price on 23 June and 14% above the company's net asset value of 905p a share at the end of June. SEGRO shareholders also keep their interim dividend of 10.14p and any final dividend for 2026 of up to 22.56p declared before completion.
The 40-day clock
Once the CMA formally starts its phase 1 investigation, it has 40 working days to decide whether the deal can go ahead or should be referred for a more detailed phase 2 inquiry. The case page will be updated when that clock starts.
Shareholder votes and a court hearing are also needed. Completion is expected in the first half of 2027.
