Cramer -- Williams Companies' Great M&A Move; More Gas Pipeline Deals Likely

NEW YORK (TheStreet) -- Shares of energy infrastructure businesses Williams Companies (WMB) and Williams Partners (WPZ) are shooting higher on Wednesday, following a deal for Williams Companies to buy Williams Partners for $13.8 billion in an all-stock deal. 

Williams Companies is up 5.4% and will exchange 1.115 shares of WMB for each share of Williams Partners, which is up 21.5% in response.

WMB Chart
Williams Partners WPZ and Williams Companies WMB data by YCharts

These companies have an attractive dividend yield and are "big winners" following this deal, TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. 

Williams Companies' capital structure allows it to tap a lower cost of capital than Williams Partners, which will be advantageous for the newly formed entity, Cramer explained. 

This will not only lead to lower costs, but also allow the company to continue raising its capital distribution to shareholders. The company plans to boost its payout by 10% to 15% per year through the end of the decade. 

There's consolidation going on in the pipeline industry.

"The winners will be huge," Cramer said. He expects further consolidation to occur, both for natural gas and oil pipeline companies. 

While Williams Companies will continue to benefit from the shipment of natural gas, Cramer said he also likes Kinder Morgan (KMI), which made a similar M&A move last fall.

At the time of publication, Cramer's Action Alerts PLUS had a long position in KMI.

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