Prologis, a logistics and industrial real estate firm, said it would acquire competitor Duke Realty under an all-stock deal valued at about $26 billion, including debt.

The announcement comes after Duke Realty rejected the purchase offer that Prologis put on the table, last May, for almost 24,000 million dollars, since it considered that what was offered was an "insufficient" amount.

The acquisition comprises 153 million square feet of operating properties in 19 US logistics geographies, as well as 11 million square feet of development in process, with about $1.6 billion in total investment expected. It also includes 1,228 acres of owned and optioned land with approximately 21 million square feet of construction.

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“Future synergies have the potential to generate approximately $375 million to $400 million in annual earnings and value creation, including $70 million to $90 million of incremental property cash flow and revenue from Essentials, $5 million to $10 million. dollars in capital savings costs and $300 million in incremental development and value creation,” Prologis estimated.

Under the terms of the agreement, Duke Realty shareholders will receive 0.475 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 it to obtain properties in key geographic regions and cities, including Southern California, New Jersey, South Florida, Chicago, Dallas and Atlanta. It also plans to own 94% of the assets of Duke Realty.

“We admire the disciplined repositioning strategy that the Duke Realty team has completed over the past decade,” said Prologis Co-Founder, CEO and Chairman Hamid R. Moghadam.

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"They have built an exceptional portfolio in the United States, located in geographies that we believe will outperform in the future. That will be driven by Prologis' proven track record as a value creator in the logistics space. We have a diverse model that allows us to deliver even more value for customers," he added in a statement.

Prologis owns about 1 billion square feet of warehouses and distribution centers, which are leased by large firms like Amazon and Home Depot.

Duke Realty, meanwhile, owns and operates approximately 160 million square feet of industrial real estate in 19 major US logistics markets.

In recent years, Prologis has increased its real estate presence through acquisitions. It bought Liberty Property Trust in 2020 and DCT Industrial Trust in 2018.

“Following a deliberate and thorough evaluation of the transaction and the enhanced offering, we are excited to bring our two complementary businesses together. Together, we can accelerate the potential of our business and better serve tenants," said Jim Connor, president and CEO of Duke Realty.

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