NEW YORK (TheStreet) -- TransCanadaCorp. (TRP) - Get Report stock is down by 1.63% to $37.46 in midday trading on Friday, after the company announced it will acquire ColumbiaPipelineGroup (CPGX) in a deal valued at $13 billion.
After the market close on Thursday, the energy infrastructure company announced it will buy natural gas pipeline operator Columbia Pipeline for $25.50 per share. The acquisition will create one of North America's largest regulated natural gas transmission businesses, the company said in a statement.
There is a lot of misinformation about the deal, TheStreet's Jim Cramer says.
"It has to do with the fact that their Alberta pipe, which brings natural gas to the East, has been obviated by what's been going on at the Marcellus and Utica," Cramer says. "TransCanada does have a terrific business of transporting natural gas from the U.S. to Mexico."
The deal, which is expected to close in the second half of 2016, will be accretive to TransCanada's earnings during the year after the transaction completes.
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 rates this stock as a "sell" with a ratings score of D+. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: TRP