British warehouse developer Segro has accepted a £14 billion takeover offer from US suitor Prologis.
The agreement comes after a weeks-long battle by the rival firm to take control of the FTSE 100 group and is the latest in a flurry of overseas takeovers of UK businesses.
Segro had previously rebuffed three takeover offers from Prologis, with the most recent previous move worth about £13.5 billion.
Late last month Prologis laid down a £14 billion “best and final offer” for the London-based group.
Segro said on Tuesday that they would recommend the deal and that they consider the terms “fair and reasonable”.
Prologis will pay 1,032p for each Segro share, with shareholders to be paid largely through stock, as well as £3.5 billion in cash.
The expanded Prologis business will then apply for a secondary share listing in London.
David Sleath, chief executive of Segro, said: “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.”
Daniel Letter, chief executive of Prologis, said: “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.”
