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The transaction is expected to be completed by the first quarter of 2027.
Aerial view of a Kuehne+Nagel logistics warehouse in Belgium, showing multiple trucks docked at loading bays. The European logistics real estate sector has recently seen a wave of major consolidations, with this being the latest significant move.
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Argan and WDP have reached an all-stock merger agreement to form a logistics property company valued at €13 billion (equivalent to $14.79 billion).
French warehouse property developer Argan and its Belgian counterpart WDP have finalized an all-stock merger plan. The combined entity has an enterprise value of €13 billion ($14.79 billion), marking the latest initiative in the current wave of consolidation within the European logistics real estate sector.
The companies disclosed the transaction terms: Argan shareholders will receive 3 newly issued shares of WDP for every 1 share of Argan they hold. The French company intends to propose a special dividend distribution before the deal closes, amounting to €11 per share.
Based on WDP's closing price of €22.74 on Thursday, and including the special dividend, this acquisition implies a value of €79.22 per share for Argan. This represents a premium of approximately 21% compared to Argan's closing price of €65.40 on Thursday, and a premium of about 30% relative to its three-month volume-weighted average share price.
During early European trading, Argan's share price rose 14% to €74.70, while WDP's shares fell 1.1% to €22.50. Year-to-date, Argan shares have accumulated a gain of 13%, while WDP is up 1.8%.
The two companies stated that the transaction has received unanimous support from both boards of directors, Argan's supervisory board, and key shareholders, including Credit Agricole Assurances through its subsidiary Predica.
The recent wave of mergers and acquisitions in European logistics real estate has been intense. This week, US warehousing giant Prologis launched a final takeover offer for its British counterpart, Segro, in a deal valued at approximately $18.7 billion. Segro holds a substantial portfolio of industrial and logistics properties in Europe, alongside investments in data center assets.
Argan and WDP stated that the merger is expected to achieve €10 million in synergies within 12 months of completion, creating immediate value for shareholders of both entities.
The transaction is still subject to regulatory approvals in various countries and a shareholder vote, with the closing anticipated in the first quarter of 2027.
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Editor: Guo Mingyu