Segro is in the final stages of agreeing a much lower than expected takeover bid for Brixton that will value its industrial property rival at significantly less than its £170m market capitalisation.

Segro could conclude an agreement with Brixton as early as next week, although no announcement is expected until after full due diligence has been completed. Segro has completed much of the work for the takeover and is thought to have arrived at a value for the company that will be much less than its closing share price on Friday. The two sides are still negotiating, however, so terms could change.