Norges Bank Investment Management (NBIM) has urged US real estate giant Prologis and UK warehouse landlord Segro to enter into “constructive discussions” over a potential merger, saying the proposal “merits consideration”.

NBIM, which manages the assets of Norway's Government Pension Fund Global (GPFG), said that as a long-term shareholder in both companies it understands the “strategic rationale” for a combination of the two property companies.

As of 30 June 2026, NBIM held a 1.3 per cent stake in Prologis and an 8.3 per cent stake in Segro.

NBIM encouraged the two boards to explore whether a transaction could be agreed on mutually beneficial terms for both companies and their shareholders. The investment manager said it would assess any formal proposal on its merits once the full terms are known.

Prologis has made a series of takeover proposals for Segro in recent weeks, whilst it was also revealed that it made an unsolicited bid in 2024. To date, Segro has rejected the bids, saying they undervalue the company, although it remains open to engagement if Prologis submits a more appropriate proposal.

Today, 22 July, Prologis announced what it described as its "best and final" proposal to acquire Segro, valuing the UK logistics property company at approximately £14bn.

The revised offer comprises 0.0920 new Prologis shares for each Segro share, representing a 9.5 per cent increase on its initial proposal, alongside a partial cash alternative of up to £3.5bn, equivalent to 25 per cent of the total consideration at a fixed price of 1,031.7p per share, subject to pro-rata scale-back.

Based on Prologis' closing share price on 21 July, the proposal values each Segro share at 1,031.7p, representing a 39 per cent premium to Segro's closing share price on 23 June, before the offer period began.

Prologis also called on Segro's shareholders to encourage the board to recommend the combination and requested that the UK Takeover Panel extend the current ‘put up or shut up’ (PUSU) deadline beyond 22 July to allow more time for discussions over the terms of a recommended offer.

The US real estate company also said it intends to explore a secondary listing on the London Stock Exchange following any combination, subject to sufficient investor demand and engagement from Segro's board.

Prologis CEO, Dan Letter, said: "There is no doubt a combination of both companies would deliver meaningful value. We have listened to feedback from shareholders and this morning, we have improved our proposal to make a compelling offer to the Segro board. We run Prologis with discipline and this is our best and final offer."

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