Prologis to buy Duke Realty in $26 billion deal to expand warehouse presence

(Reuters) -Warehouse provider Prologis Inc said on Monday it would acquire peer Duke Realty Corp in a nearly $26 billion all-stock deal, including debt, just over a month after a previous offer was rejected.

Duke Realty shareholders will receive 0.475 of a Prologis share for each share held, which amounts to $55.68, according to Reuters calculations.

Shares of Duke Realty rose 4.4% to $51.30 in premarket trading, while those of Prologis fell 4.1%.

Duke Realty had in May rejected an exchange ratio of 0.466 shares of Prologis common stock last month, in a deal valued at $23.7 billion.

The equity value of Monday’s offer is about $21.4 billion, based on Reuters calculations.

The transaction comes when Prologis is dealing with an uptick in demand from companies looking to park their finished products in warehouses amid a supply chain crunch.

Prologis said on Monday it would add properties in key markets such as Southern California, New Jersey, South Florida, Chicago, Dallas and Atlanta through the acquisition.

Both companies’ boards have approved the deal, Prologis said on Monday.

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