(Prorogis) Warehouse giant Prologis has announced it will buy rival Duke Realty in an all-stock transaction valued at $26 billion.
The deal entitles Duke Realty shareholders to 0.475 times a Prologis share for each Duke share they own.
Prologis says the transaction will boost the company’s balance sheet while expanding its opportunity to apply innovation to spearhead long-term growth.
Prologis plans to hold about 94% of Duke Realty assets and exit one market.
The deal has been approved by the boards of the two companies and comes after Duke Realty, in May, declined an ‘insufficient’ offer of almost $24 billion from Prologis.
The transaction is expected to close in the fourth quarter and is expected to have an immediate accretion of about $310 to $370 million to Prologis. The deal is also expected to be earnings neutral in the first year.
DRE:NYSE is up +1.45% in premarket, PLD:NYSE is down -6.73% in premarket
