Prologis buys warehouse rival Liberty in $12.6B deal

Warehouse giant Prologis has agreed to acquire rival industrial real-estate business Liberty Property Trust in a $12.6 billion deal.

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Prologis said Liberty shareholders would receive 0.675 times a Prologis share for each unit they hold, about $61 a share. The deal is expected to close in the first quarter of 2020.

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The move is expected to help expand Prologis' presence in the U.S. as the ecommerce boom continues, adding to its holdings in Pennsylvania's Lehigh Valley, Chicago, Houston, New Jersey and Southern California.

TickerSecurityLastChangeChange %
PLDPROLOGIS INC89.10-0.02-0.02%
LPTLIBERTY PROP60.12+0.08+0.13%

"Liberty’s logistics assets are highly complementary to our U.S. portfolio and this acquisition increases our holdings and growth potential in several key markets," said Prologis Chairman and Chief Executive Officer Hamid Moghadam. "The strategic fit between the portfolios allows us to capture immediate cost and long-term revenue synergies."

Prologis plans to sell about $3.5 billion worth of assets, including $2.8 billion of "non-strategic" logistics properties and $700 million of office properties, according to a statement.

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Prologis customers, according to its website, include Amazon.com, Walmart and FedEx Corp.