Prologis, the New York-listed global industrial real estate specialist, and its US listed rival AMB Property Corporation have confirmed that they are in talks about a potential 'merger of equals'. Such a tie-up would create a globally active real estate investment trust with a combined market capitalisation of about EUR 10 bn.

The two companies develop and manage distribution and industrial assets worldwide, and both have significant operations in Europe. The discussions concerned combining in an all-stock, at-market transaction, based upon the unaffected trading prices of the two companies' stock prior to media reports of a possible merger. 'There can be no assurance that any discussions regarding a merger will result in a definitive agreement for such a transaction or the timing of such agreement or any transaction,' the two companies stressed.