NextEra Energy Partners' deal to buy Oncor for $18 billion has hit a roadblock, and Jim Cramer is offering a solution: bow to the deal-blockers, also known as the Texas Industrial Energy Consumers.
The group, composed of businesses that make up the largest consumers of electricity in Texas, has been holding the deal hostage to squeeze additional money out of Oncor's acquirer.
For NextEra, which has the highest valuation of the seven biggest utilities in the United States, another failed deal could dampen investors' growth expectations and slam the stock.
"If NextEra wants to maintain its status as the premier growth utility, let me tell you something: it needs to swallow its pride and give the Texas Public Utility regulators exactly what they want," the "Mad Money" host said. "Otherwise they'll block the Oncor deal and NextEra's stock will get pounded."
If NextEra gives in, Cramer argues that it could bode extremely well for the company, which with the purchase of Oncor will exclude itself from the interest rate cycle that holds so many other utility names hostage.