Cramer: FedEx-TNT deal means Europe’s improving

FedEx's latest deal points to better economic conditions in Europe, CNBC's Jim Cramer said Tuesday.

"[CEO Fred Smith is] the first guy that sees that Europe is back, but you can still get in and just take advantage of the upswing," he said on CNBC's "Squawk on the Street."

Cramer made his remarks after the package delivery giant announced it plans to buy TNT Express, a Netherlands-based courier, for $4.8 billion. FedEx's stock was up about 3.3 percent in midmorning trading.

"I thought this was fabulous. I thought FedEx was not even up enough in premarket trading," Cramer added. "FedEx is such a smart company. It's been a dramatic outperformer versus UPS. UPS has done nothing [and they] missed two holiday seasons."

Read MoreFedEx offers to buy TNT Express for $4.8B

UPS' stock is up about 0.4 percent in the last six months, while FedEx's has risen nearly 7 percent.