Argan (ARG) M&A announcement summary

Deal rationale and strategic fit

• The merger creates a €13 billion European logistics real estate platform spanning eight countries, positioning the group as a top-3 European logistics player and the largest listed Western European logistics platform.

• Combines complementary strengths: ARGAN's leadership and brand in France with WDP's European reach and financial capacity, supporting integrated supply chain solutions and cross-selling opportunities.

• Accelerates growth ambitions, expanding into Germany, Italy, and Spain, and reinforces long-term strategic targets.

• Both companies share entrepreneurial DNA, family-led cultures, and a disciplined approach to growth.

• Enhances client offering with cross-border solutions and a resilient, diversified tenant base focused on food and daily goods.

Financial terms and conditions

• ARGAN shareholders receive 3 newly issued WDP shares per ARGAN share and a proposed €11/share exceptional distribution, for an implied valuation of €79.22 per ARGAN share (21% premium to spot price).

• Shareholder approval required at both companies, with key reference shareholders already committed (~52% of ARGAN, ~19% of WDP voting rights).

• ARGAN shareholders voting against the merger offered a cash exit right at €71.10 per share, adjusted for the exceptional distribution.

• Transaction is a friendly cross-border merger with no MAC clause or financing condition, and is positioned as a strategic combination rather than a sale.

• Unanimous board support and voting commitments from major shareholders.

Synergies and expected cost savings

• Identified annual synergies of €10 million, mainly from cost of debt optimization and some operational efficiencies, to be delivered within 12 months.

• Expected +3% EPRA EPS accretion and +7% EPRA NTA accretion from the first year of full operation (2028), including cost synergies and €250 million of disposals.

• Combined self-funding capacity of €700 million per annum supports development-led growth.

• Portfolio rotation and asset disposals targeted at 1–2% of the portfolio per year to drive value.

• Accelerated development, enhanced cross-selling, and energy solutions deployment are expected.