NEW YORK (TheStreet) -- TheStreet's Jim Cramer says he was initially skeptical about the deal between Halliburton (HAL) and Baker Hughes (BHI) because of the amount of overlap, which he estimated could have been up to $5 billion.
Cramer says he thought the Justice Department would never allow the merger to happen in that case. But Halliburton has said it would sell businesses that generate $7.5 billion in revenue to satisfy regulators and has also offered $3.5 billion in breakup value.
Cramer now says this deal will get done no matter what and it will create a global powerhouse that can stand up to Schlumberger (SLB) . He adds the merged company will have some technological strengths that will force customers to use Halliburton.
His only concern now is that he thinks oil is still going down and could bottom at $70. But he advises investors not to sell Halliburton and urges them to look at it here. Cramer says the deal will take a long time, but he thinks Halliburton is a great company and believes CEO David Lesar has done a remarkable job for shareholders.HAL data by YCharts