Segro has announced that it has agreed to the terms of Prologis’ "final" combination offer, valued at £14bn.

Under the terms of the combination, shareholders in the FTSE 100 UK logistics firm will be entitled to 0.092 new Prologis shares, with a partial cash alternative of £3.5bn, which represents approximately 25% of the total value of the consideration.

The combination consideration of £10.31 per Segro share represents a 39% premium on the firm’s share price on 23 June, which is the day prior to the commencement of the offer period.

The firms said that the combined group would bring together “two high-quality portfolios” with approximately £200bn of assets under management, adding that the combination of the US firm’s global customer ecosystem with Segro’s “complementary pan-European platform” would create a stronger proposition for customers.

The deal comes after the UK firm was approached with multiple offers from Prologis, which were deemed to have failed to reflect the "quality, scarcity and growth" exhibited by the business.

Segro’s directors intend unanimously to recommend that its shareholders vote in favour of the scheme.

CEO at Segro, David Sleath, said the firm has built a "unique business over many decades", with operations in some of Europe’s "most attractive locations".

He added: "Prologis shares our conviction in the long-term structural drivers underpinning demand for modern logistics and data centre infrastructure. We believe the combination would bring together two highly complementary businesses and create a compelling platform, combining Segro's exceptional portfolio and development pipeline with Prologis' existing European business and global scale, customer franchise and operational capabilities, while retaining a shared commitment to disciplined capital allocation, customers and people.

"Prologis' proposal provides Segro shareholders with a compelling opportunity to realise the value created by Segro and benefit from the future growth of the combined group."

CEO at Prologis, Daniel S. Letter, concluded: "We are pleased to have reached agreement with the SEGRO Board on a combination that we believe will create meaningful value. This deal brings together SEGRO's exceptional portfolio and customer relationships with Prologis' global platform, operating expertise and financial strength.

"We have great respect for Segro, its people and the business they have built over many years. The constructive engagement between our leadership teams throughout this process has reinforced our confidence in the opportunity ahead.

"As we move forward, we will approach the work ahead thoughtfully and deliberately. We look forward to building on the strengths of both companies and creating even greater value for our customers and shareholders."

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