Warehouse giant Prologis is purchasing its rival Liberty Property Trust for $12.6 billion, creating a massive new player in the industrial real estate business.
Prologis aims to use the acquisition to bolster its presence in the United States amid a boom in e-commerce, according to Reuters. The company cited markets including New Jersey, Southern California and Chicago as places where the Liberty acquisition would help it establish a stronger foothold.
The deal will likely close during the first quarter of next year and help the firms save about $120 million. Prologis also plans to sell about $3.5 billion worth of its assets.
Source: The Real Deal