(Bloomberg) -- Prologis Property Mexico is emerging as the top contender to take over one of Mexico’s largest industrial real estate companies, bringing an end to a heated bidding war for an asset prized for its potential in the nearshoring boom.
The Mexican real estate investment trust, which is backed by US giant Prologis Inc., said Thursday that a majority of shareholders support its offer for TF Administradora Industrial, or Terrafina. Remaining shareholders have until midnight in Mexico (2 a.m. ET on Saturday) to join the deal.
Fibra Prologis’s takeover would create a massive industrial property owner and the biggest single stock for investors to play nearshoring. The term is a much-hyped reference to the trend of companies seeking warehouse and factory space in Mexico to have access to consumers in the US.
That hype has sparked a revival of equity issuance in the country’s stock market in the last year. More recently, though, threats of tariffs from US presidential candidate Donald Trump have rattled REIT stock prices and Elon Musk said he could abandon plans to build a factory in Mexico if Trump wins.
Six companies, including global real estate giant Blackstone Inc., Fibra Uno Administracion and a Mexican REIT sponsored by Australia’s Macquarie Asset Management Ltd. joined in the bidding for Terrafina, repeatedly raising their offers and extending the deadline for offers.
Fibra Prologis nudged ahead though with its offer, a mix of cash and stock. Unless shareholders suddenly change their mind, the Mexico City-based firm is set to take over. Blackstone on Friday withdrew its offer, according to a statement.
“The acquisition will position Fibra Prologis as the largest industrial player in Mexico with a well-diversified portfolio,” Bradesco BBI strategist Rodolfo Ramos wrote in a note.
The Terrafina shareholders who don’t join the bid would be left with a stock with potentially low liquidity. Trading of Terrafina shares was halted briefly Friday. The stock was down about 3% as of 1 p.m. in Mexico.
Shareholders who had tendered shares last week for Blackstone’s offer had their shares locked-up while the world’s largest alternative asset manager extended its bid on a daily basis following its initial deadline. But tendered shares were released on Friday once Blackstone pulled its offer.
(Updates stock move and adds detail on Blackstone offer starting in paragraph eight. And earlier version corrected the location of Fibra Prologis.)
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