On August 4, Prologis declined 3.02% in pre-market trading, trading at $139.99/share, with turnover of $15.29 million. The decline follows the company's announcement of a recommended agreement to acquire UK logistics real estate giant SEGRO in a transaction valued at approximately $18.8 billion.

Under the terms of the deal, SEGRO shareholders will receive 0.0920 new Prologis shares per SEGRO share, with a partial cash alternative from a pool capped at roughly 3.5 billion British pounds. The merger is expected to grow Prologis' European portfolio by 47% and create a combined $269 billion in assets under management. Notably, the company disclosed the buyout is projected to have a mostly neutral to slightly negative impact on core funds from operations during the first full year after closing, likely weighing on investor sentiment.

The transaction, which followed multiple rounds of bidding since June, requires SEGRO shareholder approval, court sanction, and regulatory clearance, with completion expected in the first half of next year. Prologis also plans a secondary listing on the London Stock Exchange as part of the deal.

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