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TheStreet Open House

Jim Cramer's Mad Dash: Stryker/Smith & Nephew Deal a 'Win-Win'

Stocks in this article: SYKSNN

NEW YORK (TheStreet) -- According to the Financial Times, Stryker (SYK) plans to take over Smith & Nephew (SNN), maker of artificial knees and hips. 

On CNBC's "Cramer's Mad Dash" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said, "It's killing me that I didn't see this coming" because it was an obvious defensive move as Stryker attempts to keep up with its competition. 

If Stryker performed what's referred to as an "inverted merger," it would become a U.K. entity and benefit from a lower tax rate. And as the show's co-host David Faber pointed out, it would allow Stryker to make acquisitions of U.S. companies without paying repatriation taxes, since it would no longer be a U.S. entity. 

"It's a win-win; I think it happens," Cramer said of the proposed deal between Stryker and Smith & Nephew. 

He went on to say that the stock market seems to like these types of deals too, since both stocks -- the acquirer and the acquired -- move higher. This in turn makes other companies want to perform similar deals. 

Stryker has denied this report.

-- Written by Bret Kenwell in Petoskey, Mich.

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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