GE on Monday said it will merge its oil and gas business with Baker Hughes, which would create the world's number two oilfield services provider. GE will have 62.5 percent ownership of the "new" Baker Hughes, while Baker Hughes shareholders will get a one-time cash dividend of $17.50 per share and 37.5 percent of the company.
"You get a story, and the story is that GE is going to sell its oil and gas unit to Baker Hughes, and you're just so upset about it. You have to take the opposite view when you hear GE is getting control of a company that you really do like," Cramer said on "Squawk on the Street."
"You take a company, a premiere drilling service company like Baker Hughes and you merge the two and suddenly you get a very good rival to Schlumberger," he said.
Schlumberger is the world's largest oilfield services company, working in more than 85 countries, according to its website.
GE and Baker Hughes said the deal is expected to add 4 cents to GE's earnings per share by 2018 and add 8 cents by 2020.
Both companies' stocks were trading higher in midmorning trade Monday.