Metcash buys Peries Group to defend its IGA network, says Jefferies
Jefferies says Metcash's A$80-85 million purchase of Peries Group, owner of 15 Queensland IGA stores, is a defensive move to keep them in the network.
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what happened
Jefferies says Metcash is acting defensively with its A$80 million to A$85 million acquisition of Peries Group, which runs 15 IGA supermarkets in Queensland. Market Talk reports that analyst Michael Simotas believes Metcash mainly wanted to stop those stores from moving to a rival.
The Peries outlets brought in roughly A$264 million of retail sales in FY26, while Metcash recorded A$150 million of wholesale sales to the group that year. Jefferies sees room to sell some or all of the stores to existing IGA operators, since they suit a large Queensland joint-venture partner, and doubts Metcash will keep them long term.
why it matters
For Metcash the deal is small, but it highlights the priority of keeping the IGA network intact. Jefferies maintains its buy rating and A$3.40 price target, against a Monday close of A$3.16. A possible resale of the stores to existing IGA operators could shape investor expectations about the company's future footprint in Queensland.
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- Metcash Likely 'Playing Defense' With Peries Acquisition — Market Talk, 19 October 2026 at 22:57 UTC
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