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NEW YORK (TheStreet) -- Chemical giants DuPont (DD) - Get DuPont de Nemours, Inc. Report and Dow Chemical (DOW) announced this morning that they have agreed to merge in an all-stock deal valued at $130 billion, but shares of both companies are tumbling today.

"I don't think people realize how powerful this combination really is," TheStreet's Jim Cramer said on CNBC's Squawk on the Street this morning.

The deal's synergies are "low balling," factory duplication between the companies will prompt layoffs, which is good for Wall Street, DuPont CEO Ed Breen successfully broke up Tyco International (TYC) and Dow Chemical CEO Andrew Leveris is very motivated, Cramer explained.

After merging, the companies plan to split into three separate businesses focused on agriculture, materials and specialty products, which are dominant within the industrial sector, Cramer said.

"The market is so skittish, people are taking the money and running - even from good things," Cramer stated. "It's a great combination, but for today, it doesn't matter."

He pointed out that shares of Dow Chemical were at their current price 10 days ago, before the deal was first reported by the Wall Street Journal on Tuesday evening.

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Similarly, Allergan (AGN) and Starwood Hotels& Resorts Worldwide (HOT) shares fell after announcing they would merge with Pfizer (PFE) and Marriott International (MAR), respectively, Cramer mentioned.

Antitrust concerns and a hazardous market drove these stocks down, rather than up, he noted.

Although CEOs Breen and Leveris indicated in an interview with Squawk on the Street that they aren't concerned about the stocks being down, Cramer said he's sure they're quietly mimicking Star Trek's Scotty in saying "I'm givin' her all she's got!"

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate DU PONT (E I) DE NEMOURS as a Buy with a ratings score of B-. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The debt-to-equity ratio is somewhat low, currently at 0.90, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.24, which illustrates the ability to avoid short-term cash problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to other companies in the Chemicals industry and the overall market on the basis of return on equity, DU PONT (E I) DE NEMOURS has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • 38.33% is the gross profit margin for DU PONT (E I) DE NEMOURS which we consider to be strong. Regardless of DD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.79% trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 18.5%. Since the same quarter one year prior, revenues fell by 17.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • You can view the full analysis from the report here: DD