Why Jim Cramer Says the Raytheon Merger Makes United Technologies a Buy

Author:
Publish date:
Video Duration:
0

It's merger Monday. 

Raytheon (RTN) - Get Report and Real Money Stock of the Day United Technologies (UTX) - Get Report announced that they have agreed to an all-stock merger over the weekend. 


The companies would 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 Report .

 Jim Cramer said that he likes the merger and thinks that it could proceed without too much trouble. 

In fact, Cramer likes the deal so much that he thinks investors eyeing the defense space should consider adding United Technologies to their portfolios. 

"I think you should buy UTX because it's down off of the exchange. It was up at the beginning. I wrote a piece this weekend about how I expected it to be down. And when it got down, you have to buy. I'm debating whether with the team, do we move this into Action Alerts PLUS or not? It's in the bullpen. I think you pull the trigger and you buy some now, buy some later," said Cramer. 

Related. Jim Cramer: Why I Like the Proposed United Technologies/Raytheon Merger

More from Cramer Today

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

The Three Things Jim Cramer Watches For When a Company Announces M&A Plans

Jim Cramer: The One Thing That Could 'Break' the U.S. China Trade Talks

Advice from Jim Cramer: Setting Up A Portfolio For Your Grandchildren