Prologis Inc., a warehouse real estate company, said on Tuesday it had offered to buy its smaller peer Duke Realty Corp in an all-stock deal valued at $23.7 billion, as it looks to benefit from the booming demand for industrial space.
The deal comes at a time when Prologis is struggling to keep up with an uptick in demand from companies looking to park their finished products in warehouses amid a supply chain crunch.
“The relevant supply in the markets that we care about are extremely tight,” the company said in a call with analysts last month, as customers continue to compete for the little space that remains.
Storage space requirement, especially from e-commerce firms including Amazon.com Inc, has seen a jump as the pandemic has prompted consumers to switch to online shopping.
San Francisco-California based Prologis leases logistics facilities to about 5,800 customers including Amazon.com Inc, BMW AG, and FedEx Corp.
Prologis said it was reiterating its offer after Duke rejected a proposal, made in private, earlier this month.
The company’s offer values Duke, an owner and operator of industrial real estate, at $61.68 per share—an over 29 percent premium on its stock’s closing price on Monday.
Duke did not immediately respond to Reuters request for comment.
Its shares jumped 22 percent in premarket trading.