Jefferies sees value in Metcash, calls Peries acquisition a 'defensive' move

By Reuters News

** Jefferies maintains a "buy" rating on Metcash MTS.AX with an unchanged A$3.40 price target following the company's acquisition of Queensland supermarket operator Peries Group

** Says the deal appears defensive, aimed at keeping the 15-store Peries supermarket network within the IGA network rather than losing it to a competitor

** Brokerage sees scope for future divestments of the stores or joint-venture arrangements with an existing IGA operator

** Expects the acquisition to be marginally earnings accretive, adding about 0.7% to earnings per share

** Stock down 4.2% YTD, as of last close

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