Warehouse giant Prologis Inc agreed to acquire competitor industrial real-estate business Liberty Property Trust in a $12.6 billion deal to improve its U.S. presence amid the e-commerce boom. If approved, Prologis confirmed Liberty shareholders to receive 0.675 times a Prologis share for each unit held, about $61 a share. The deal is expected to be closed in the first quarter of 2020.
Prologis has said the all-stock deal, including the assumption of debt, would deepen the presence in the U.S. markets like Pennsylvania’s Lehigh Valley, Chicago, Houston, New Jersey, and Southern California.
Prologis plans to sell off about $3.5 billion worth of assets, including $2.8 billion of “non-strategic” logistics properties with $700 million of office properties. The transaction is anticipated to save around $120 million of administrative costs, operating leverage, lower interest expense, and lease adjustments.