In this article

Signage outside a Prologis warehouse occupied by Kuehne + Nagel in Redlands, California, U.S., on Sunday, Nov. 7, 2021. Fallout from the global supply-chain crisis is clogging U.S. ports, pushing warehouses to capacity and forcing logistics managers to scramble for space.
Roger Kisby | Bloomberg | Getty Images

Warehouse giant Prologis said Monday that it will acquire its smaller rival Duke Realty in an all-stock deal valued at about $26 billion, including debt, in a vote of confidence for the red hot industrial real estate sector.

The announcement comes after Duke Realty in May rejected a nearly $24 billion buyout offer from Prologis, calling it insufficient.

Prologis shares fell more than 4% in premarket trading Monday after the news. Duke Realty shares rose around 4%.

Prologis controls roughly 1 billion square feet of warehouses and distribution centers used by companies including Amazon, Home Depot and FedEx. Duke Realty owns and operates about 160 million square feet of industrial real estate in 19 major U.S. logistics markets.

Both companies’ boards of directors have unanimously approved the transaction, a press release said.

Under the terms of the agreement, Duke Realty shareholders will receive 0.475x of a Prologis share for each Duke Realty share they own. The transaction is expected to close in the fourth quarter.

Prologis said the transaction will allow for it to gain properties in key geographies including Southern California, New Jersey, South Florida, Chicago, Dallas and Atlanta.

It said it plans to hold 94% of the Duke Realty assets and exit one market.

This story is developing. Please check back for updates.

You May Also Like
The Human Touch in Law: Lessons from Dorothy Lawrence

The Human Touch in Law: Lessons from Dorothy Lawrence

Imagine this: a quiet courtroom, bathed in soft morning light, as a…

Here’s what the SEC will require under its strict new stock buyback disclosure rules

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, testifies before the…

No more masks? PM Boris Johnson to reveal England’s lockdown-lifting plan

England fans celebrate after winning the UEFA EURO 2020 quarter-final football match…

4 ways shopping for the holidays is going to be different this year

Noam Galai | WireImage | Getty Images Not even Santa knows what…