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What Monday's Mergers and Acquisitions Tell Jim Cramer About the Markets

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Happy M&A Monday!


Donald Trump announced the "indefinite" suspension of tariffs planned on goods imported from Mexico after reaching an agreement with the Mexican government to tackle illegal immigration, but also warned that if cooperation falls short "we can always go back to our previous, very profitable, position of tariffs."

And then President Trump hopped on a call with CNBC to further discuss his thoughts on the Federal Reserve, the suspended tariffs on Mexico and he weighed in on the Raytheon and United Technologies deal.

Raytheon's Merger With United Technology

Raytheon (RTN) - Get Free Report and Real Money Stock of the Day United Technologies (UTX) - Get Free Report announced that the companies are planning on an all-stock merger. The companies will combine to become Raytheon Technologies.

According to the Wall Street Journal, Raytheon Technologies --which would be valued at more than $100 billion after planned spinoffs, would become the world's second-largest aerospace and defense company by sales behind Boeing (BA) - Get Free Report .

Acquisition Madness

Mergers aren't the only thing to keep an eye on Monday morning. 

Salesforce (CRM) - Get Free Report announced that it was acquiring Tableau Software (DATA) - Get Free Report for around $15.7 billion.

The deal gives Tableau investors 1.103 in Salesforce stock and should increase the combined group's sales by between $300 million and $400 million, the companies said, with a new forecast of between $16.45 billion and $16.65 billion, an increase of around 35% year-over-year. Salesforce's fiscal 2020 earnings will, however, likely be reduced by about 75 basis points, year-on-year, with non-GAAP earnings now pegged in a range of $2.51 to $2.53 per share, down from last week's forecast of $2.88 to $2.90 that followed stronger-than-expected first quarter earnings.

And Merck announced that it was planning to buy Tilos Therapeutics for over $770 million.

Don't Miss Out

Jim Cramer has his live Action Alerts PLUS investing club's monthly conference call on Wednesday, June 12 at 11:30. 

The call is exclusive for members, but non-members can head to Action Alerts PLUS to trial the club and watch the call live. 

Related. Jim Cramer on M&A Monday and Raytheon's Merger With United Technologies

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