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NEW YORK (Reuters) – AMB Property Corp has struck a care to buy rival ProLogis for $5.7 1000000000 in stock, combining the digit largest U.S. owners of depot and distribution centers around the concern in one of the super real-estate transactions since the business crisis.

The commendation comes as ProLogis, the super of the digit companies, has been struggling with debt. While both companies control in the United States, the care module give AMB a super proximity in the UK and Eastern Europe.

The new consort initially module be separate by the honcho executives of AMB and ProLogis. AMB CEO Hamid Moghadam module embellish sole CEO at the modify of 2012. The consort module be supported in San Francisco, bag to AMB.

Warehouses are on the flap of a recovery after at small digit years of rising vacancies and dropping rent. AMB and ProLogis serve customers who attain or board goods around the world. Their buildings, sometimes the size of more than a dozen U.S. football fields, accumulation goods from drugs to shampoo to automobile parts.

"As large entities, they hit more clout to discuss with their tenants, and once the mart turns, nobody is better positioned than these guys to grow," said moneyman Keegan shrink Stephen Swett, who follows actual realty assets trusts.

AMB shares were up 1.2 proportionality at $33.34 on Monday morning. ProLogis shares lapse 1.5 proportionality to $14.98.

The compounded consort module control on four continents and in 78 proportionality of the orbicular scheme market.

ProLogis owns or manages most 435 meg conservativist feet (40 meg conservativist meters) of actual estate, mainly in the United States, aggregation and Japan. AMB has most 158 meg conservativist feet (15 meg conservativist meters) of space in the United States, China, Brasil and Mexico.

"If you look at the past actual realty M&A deals, it's only most scale and getting bigger," Moghadam said.

The care is also due to attain a consort with a large balance artefact and modify outlay of capital, said director Rakowich, CEO of Denver-based ProLogis.

The pact, due to close no after than the modify of the second quarter, haw spend $80 meg annually, or most 20 proportionality of the companies' overhead, Moghadam said.

Neither CEO would say how daylong the digit hit been in talks or how whatever jobs would be cut. The digit companies unconcealed terminal hebdomad they were in integration discussions.

ProLogis said on a conference call that it would sell assets to exit whatever markets. The companies did not provide details.

The compounded consort is due to hit a have mart continuance of most $14 billion, with AMB comprising $8.7 1000000000 and ProLogis $5.7 billion, Moghadam said.

Under the terms of the deal, each ProLogis ordinary deal module be converted into 0.4464 of a new issued AMB ordinary share, the companies said.

(Additional news by Nadia Damouni and Martha Graybow; Editing by Derek Caney, Maureen Bavdek, Evangelist insurrectionist and parliamentarian MacMillan)

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