The $46 billion merger of AMB (NYSE:AMB) and ProLogis (NYSE:PLD) will immediately add to the the earnings of the new company, which will be named - ProLogis, said the companies.
ProLogis and AMB announced they'll be merging Monday after announcing recently that they were in merger talks.
Terms of the merger are shareholders of ProLogis will receive 0.4464 of AMB common stock for each of their shares and have a 60 percent stake in the combined company.
The immediate benefit to the companies will be in cost savings, which are estimated to come in at about $80 million a year. Once there is a sustainable turnaround in the sector, that will be a huge benefit to the new company.
ProLogis closed Monday at $14.92, dropping $0.29, or 1.91 percent. AMB closed at $33.55, gaining $0.62, or 1.88 percent.
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