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Cramer: MarkWest ‘very smart’ to sell

CNBC's Jim Cramer said Monday that MarkWest Energy Partners did the right thing by selling to Marathon Petroleum.

"We are seeing consolidation in this industry that's unprecedented, and people are not talking about it enough. We're just not going to get a lot of pipeline competition. Prices have gotten so low that people can't build the pipelines they would like to," Cramer said on "Squawk on the Street."

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On Monday, Marathon Petroleum said its limited partnership MPLX will merge with MarkWest Energy in a cash-and-stock deal worth $15.6 billion. "It's a very smart deal for MarkWest to sell out here," Cramer added.

"I'm excited about this deal because it says 'There's a pulse here. Don't give up the ship,' " he also said.

Both Marathon Petroleum and MarkWest Energy shares opened Monday trading sharply higher.