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.

More of What's Trending on TheStreet:

More from Stocks

Former Disney COO Emerges as Leading Candidate For CBS Job

Former Disney COO Emerges as Leading Candidate For CBS Job

Micron Shares Tumble on Mixed Earnings Results

Micron Shares Tumble on Mixed Earnings Results

Amazon and Oracle's Beef Is Carrying Over to the Courtroom in JEDI Dispute

Amazon and Oracle's Beef Is Carrying Over to the Courtroom in JEDI Dispute

U.S. Stocks Bounce Ahead of Fed Rate Hike Comments -- One Key Trend to Remember

U.S. Stocks Bounce Ahead of Fed Rate Hike Comments -- One Key Trend to Remember

In This Stock Market, It's Not Easy Being Green

In This Stock Market, It's Not Easy Being Green