Prologis buying Duke Realty in $26 billion all-stock deal

Real estate investment trust Prologis is buying Duke Realty in an all-stock deal valued at about $26 billion, including the assumption of debt.

Prologis Inc. said Monday that the transaction will give it logistics and industrial properties in key locations, including Southern California, New Jersey, South Florida, Chicago, Dallas and Atlanta. The company plans to hold approximately 94% of the Duke Realty Corp. assets and leave one unspecified market.

Duke Realty shareholders will receive 0.475 of a Prologis share for each Duke Realty share they own. The transaction comes about a month after San Francisco-based Prologis made an unsolicited bid for Duke Realty of Indianapolis worth 0.466 of a Prologis share following months of talks.

Both companies’ boards have approved the deal, which is expected to close in the fourth quarter. It still needs approval from both companies’ shareholders.

Shares of Prologis fell slightly before the market open, while Duke Realty’s stock rose 4.5%.