AMB, ProLogis Merger, It’s Official

SAN FRANCISCO-Locally based AMB Property Corp. and ProLogis today revealed a definitive agreement to combine through a merger of equals, creating the pre-eminent global owner, operator and developer of industrial real estate. GlobeSt.com first reported rumors of the merger last week, but now it is official. Combined, the companies are expected to have a pro forma equity market capitalization of approximately $14 billion, a total market capitalization in excess of $24 billion, and gross assets owned and managed of approximately $46 billion, according to a prepared statement.

Under the terms of the agreement, each ProLogis common share will be converted into 0.4464 of a newly issued AMB common share, and the combined company will be an UPREIT. The merger is subject to customary closing conditions, including receipt of approval of AMB and ProLogis shareholders, according to a prepared statement. The parties currently expect the transaction to close during the second quarter of 2011.