Cramer -- An Energy Transfer Equity-Williams Merger Would Be 'Remarkable'

NEW YORK (TheStreet) -- Stocks are up Monday on a potential Greek debt deal but Williams Partners L.P. (WPZ) is down 6.7%. Why? 

Because Williams Companies (WMB) reportedly rejected a $48 billion buyout offer from Energy Transfer Equity (ETE), TheStreet's Jim Cramer, co-manager of the Action Alerts Plus portfolio, said on CNBC's "Mad Dash" segment. 

WMB Chart
Williams Companies  WMB data by YCharts 

Williams Companies said the offer was contingent on it abandoning its plan to purchase the remainder of Williams Partners that it didn't already own, which is why Williams Partners is down, said Cramer. Williams also said that at a 33% premium, the deal undervalued the company. Shares of Williams Companies are up 25%. 

This would be a "remarkable deal" if it were to get done, Cramer said. Combined, the two pipeline companies would be enormous. 

A deal like this also means it's likely oil and gas prices have bottomed, he added. Companies wouldn't be looking to create such large deals if management believed the two commodities were headed lower, he explained. 

If this deal worked out, the new entity would have a lot of pipelines and would be a juggernaut in the industry. It would be "game, set, match," Cramer concluded. 

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

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