Jim Cramer on Charles Schwab Buying TD Ameritrade

Charles Schwab (SCHW) - Get Report is buying TD Ameritrade (AMTD) - Get Report in an all-stock deal valued at approximately $26 billion, the company confirmed on Monday.

Under the agreement, TD Ameritrade stockholders will receive 1.0837 Schwab shares for each TD Ameritrade share, representing a 17% premium over the 30-day volume-weighted average price exchange ratio as of Nov. 20.

The takeover, which first surfaced as a rumor last week, follows last month's move by Schwab to eliminate commissions for its retail clients, setting off a so-called "zero commissions" war in the online brokerage space that hammered the sector and caused major changes to earnings forecasts.

"With this transaction, we will capitalize on the unique opportunity to build a firm with the soul of a challenger and the resources of a large financial services institution that will be uniquely positioned to serve the investment, trading and wealth management needs of investors across every phase of their financial journeys," said Schwab CEO Walt Bettinger.

Jim Cramer is weighing in on the deal.

"I mean once Robin Hood cut commissions to nothing, everyone had to follow because Robin Hood...[is] incredibly successful," said Cramer.