Union Pacific Corporation (UNP): Jim Cramer Believes The Norfolk Deal Won’t See Competition

We recently published 12 Stocks Jim Cramer Recently Discussed As He Commented On A “Sea Of Green”. Union Pacific Corporation (NYSE:UNP) is one of the stocks Jim Cramer recently discussed.

Union Pacific Corporation (NYSE:UNP)’s shares, like those of Norfolk Southern, dipped by a little over 2% after it announced that it would take over the latter. Investors were worried about the deal’s financing affecting the firm’s income statement and balance sheet. Here’s what Cramer said about the deal:

“Well what’s incredible if you look at the actual rails, it makes so much sense. There’s so little overlap. You wanted East-West. It’s [inaudible] be great thing. There is tremendous congestion, where the two in the Midwest, in Chicago area, it’s so, I don’t see a lot of the overlap that would make you not like it. I think that, if you were a regulator in the previous regime, you might say, you know what, these two will never compete if we let them merge. So we can’t let them merge because now they won’t go against each other. But the fact is, they were never going to go against each other. That’s not, the rails, stop doing that years ago.

“This is a deal where you just would never have seen it. . .I think that they have a feeling that this one’s gonna go. Don’t matter what [inaudible] get it. And, I would argue that if you think there’s going to be big reindustrialization, Carl, you do want it. It makes sense to have this type of seamless rhythm. The rails are, look I think we all wish that we didn’t, that we had more rails in the country, they’re much cleaner, 400 miles to the diesel gallon. You could argue that other countries have them in a much more you, in a superb way, and we’re a little disjointed, This makes a lot of sense.”

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.