United Technologies Corp. (UTX) is said to be nearing a deal to purchase Rockwell Collins Inc. (COL) for over $20 billion and could reach an agreement as soon as this weekend, the Wall Street Journal reported.

United is considering a payment of no more than $140 per share for Rockwell, which would imply a 9.4% premium over Rockwell's Monday closing price of $127.99. That would put Rockwell at a market value of $20.8 billion and create one of the world's largest aircraft equipment manufacturers.

United stock traded up 1.2% and Rockwell up 1.7% late Tuesday morning.

Cramer talks about why a United Technologies-Rockwell Collins deal makes sense.

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