11:46 AM EDT, 09/15/2025 (MT Newswires) -- Deutsche Bank reiterated its buy rating on the shares of Teck Resources (TECK-B.TO) while not disclosing a price target, after the company agreed to be acquired by Anglo American.

"Following this week's announced nil-premium merger between Anglo and TECK, we published a report taking a deeper look at the synergies and valuations, and we also summarise the key discussion points with investors. We view the merger as a compelling transaction due to the synergies on offer (potential 10-20% value uplift for the enlarged group) and through the creation of a leading copper major (scope for multiple re-rating). We are Buy-rated on both companies, having recently upgraded Teck to Buy on strategic value. From our conversations with investors, the consensus is that the industrial logic of the deal is strong, but that the merger terms favour Anglo, due to the significant underperformance of TECK over the past 12 months, and there is surprise that TECK has chosen to do the transaction before QB is close to design capacity. For some, the nil-premium offer may suggest that Teck's issues at QB could take longer to fix than the market expects. There are several unresolved issues at QB, with the results of the QB action plan expected in October; this should reveal the extent of the delays and additional work/capex required at the tailings facilities. We expect (and model) that 2026 QB production could be lowered materially from ~290 kt to 220-260 kt (consensus is 274 kt).

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 58.15, Change: +0.28, Percent Change: +0.49