(Reuters) -Prologis Inc, a warehouse real estate company, said on Tuesday it had offered to buy its smaller peer Duke Realty (NYSE:DRE) Corp in an all-stock deal valued at $23.7 billion, as it looks to benefit from the booming demand for industrial space.
The deal comes at a time when Prologis (NYSE:PLD) is struggling to keep up with an uptick in demand from companies looking to park their finished products in warehouses amid a supply chain crunch.
"The relevant supply in the markets that we care about are extremely tight," the company said in a call with analysts last month, as customers continue to compete for the little space that remains.
Storage space requirement, especially from e-commerce firms including Amazon.com Inc (NASDAQ:AMZN), has seen a jump as the pandemic has prompted consumers to switch to online shopping.
San Francisco-California based Prologis leases logistics facilities to about 5,800 customers including Amazon.com Inc, BMW AG, and FedEx Corp (NYSE:FDX).
Prologis said it was reiterating its offer after Duke rejected a proposal, made in private, earlier this month.
The company's offer values Duke, an owner and operator of industrial real estate, at $61.68 per share - an over 29% premium on its stock's closing price on Monday.
Duke did not immediately respond to Reuters request for comment.
Its shares jumped 22% in premarket trading.