this time it's newell rubbermaid buying jarden corporation to form a business that will be called newell brands, worth about $16 billion. in a record deal for mergers, almost $4.5 trillion worth of deals, this is one consumers will instantly recognize. jarden, founded in 2001, has more than 120 brands including names like yankee candle, mr. coffee, crock potts, marmont athletic gear,ar aerobed inflatable mattresses, sunbeam appliances and bicycle playing cards. newell rubber, founded in 1903 originally, also makes pots and pans with its calphalon line, along with goody hair products, sharpie pens and graco baby products. its biggest purchase, rubbermaid, came in 1999 for about $6 billion. today's move is aimed at cutting the combined cost of the two companies by $500 million, giving an immediate boost to earnings. >> there's a number of great intuitive combinations that will unlock a tremendous value. and because the core businesses have momentum you don't have to worry about any underlying issues in the business getting in the way of playing for the up side in those combinations. >> rep

thank you, keurig green mountain, and good tiedings for jardin and newell rubbermaid, providing they sign on the bottom line. i'm calling martin franklin right now to get him here to fix that. maybe he'll bring one of those traveling margarita machines i like so much at home. just kidding. well, okay, i have one. tony in california. tony. >> caller: jim, booyah. this is tony in west lake village, california. >> how are you? >> caller: i'm just living the dream here, jim, love it. i want to congratulate you on your incredible access to top ceos, it really helps us home gamers understand what's going o on,. >> didn't that make a lot of sense? he was so good. the stock moved up instantly. >> and jim, you do it all the time. it's what makes "mad money" the best business show on the air. >> thank you so much. we're sure trying hard. we always struggle every day to comes up with something that helps people. how can i help you? >> caller: you recently made some suggestions about what ibm could do with the cloud. they made acquisitions which did not immediately and dramatically improve their

newell rubbermaid and jarden say they will combine. shareholders are going to own about 55% of the new company. jarden holders will get $21 in cash. that company will be called newell brands. and on the downside, there is a meltdown that i need to talk to you for we get back to you in junk bonds. we saw their worst fall in four years. to the lowestil level since 2013. it did fall 2% friday. the barclays falling also, in levels not hit since 2009. overall, s&p stocks are down 2.3%. stephanie: but if you think about these high-yield etf's, these have been criticized for months. what are you doing putting a structure on top of it that is offering premier liquidity? we have got to talk about the selloff and what it has caused, the kind of impact on several funds, just announced. its fund has liquidated entire portfolio. they plan to return the night hundred million dollars they have got under management. just last week we heard about the distressed fund. on inmen, what is going the high-yield market? i will start. this is some a lot of folk

i think we will play for the application of newell-rubbermaids model. want to respect the differences in things like yankee candle, and in the fashion and apparel businesses, but look at the growth rate, it is pretty extraordinary for what you guys have done. and that is a fantastic story. >> as the largest individual shareholder, do you get concerned at all? things are good right now, but you never know when a recession is coming. >> as you know with us, if a recession is coming, we will probably see it before other people. this will delever very quickly. it was very port to newell and us a that we keep or ratings. and it raises us in terms of a great profile. it has a lot of hos tiffs that work in favor of our shareholders. >> giving that, are you surprised the stock is down? >> no, i think people are trying to understand the strategic rational. we'll have strong double digit accretion, and we have not baked in any revenue synergies or tack benefits trying to play for a different tax structure. there is a lot of upside to play for beyond what we built

rubbermaid announced a deal newell brand with names such as mr. coffee and elmers can it rule the aisle of retailers like target and walmart? cramer sits down with the management behind the merger, next. >> don't miss a second of "mad money." follow @jimcramer on twitter. tweet him #madtweets. send jim an e-mail at madmoney@cnbc.com or give us a call, 1-800-743-cnbc. head to madmoney.cnbc.com. there's moving... and there's moving with move free ultra. it has triple-action support for your joints, cartilage and bones. and unlike the big osteo-bi flex pills, it's all in one tiny pill. move free ultra. >>> this morning we have confirmation of last week's big m&a rumor. it's buying jardon for 15.5 billion to create newell brands. it got slammed today down 7%. but i think this deal makes a ton of sense. this combination will give tremendous heft to the point where the new brands have a lot more bargaining power and negotiate with the retailers that sell their merchandise. we got to speak with the in that job of the deal. then we spoke to the founder an

no other details, but newell rubbermaid said to be in talks to combine with a consumer products company ratchetk continues to up higher, now up almost 11%. we will continue to follow this. on theocks are gaining back of this report. much more ahead on bloomberg markets. we are nearing the close of trade as we had to break. here's a look at some of the other sectors and how they performed. ♪ betty: welcome back. markets are closing in a less than -- a little less than 10 minutes from now. it's kind of been a bumpy sector. we are recovering just a little bit. abigail has a check on trade. abigail: we are recovering a little bit into the close. asittle bit of recovery but you can see, all three major u.s. stock indices are still trading down, even with that recovery. the s&p 500, seven of 10 sectors are lower. energy is the worst, down more than 4%. crude oil down more than 5%, at its lowest level since february 2009. opec decision to abandon its production limitation strategy. it for investors a little bit of a curveball. , u.s.rprisingly treasuries are rising. the field has brought down

the ceo of newell rubbermaid. thank you so much to both of you. >> thanks, jim. wall street debt is raising eyebrows and causing concern across the market culminating with locking it's investors out of its cash next week. could this move ripple through your money and sit lurking in ahead. ugh! heartburn! no one burns on my watch! try alka-seltzer heartburn reliefchews. they work fast and don't taste chalky. mmm...amazing. i have heartburn. alka-seltzer heartburn reliefchews. enjoy the relief. let's get these dayquil liquid gels and go. but these liquid gels are new. mucinex fast max. it's the same difference. this one is max strength and fights mucus. mucinex fast max. the only cold and flu liquid gel that's max-strength and fights mucus. >> last week, everyone's favorite take over target, lululemon reported a suboptimal quarter and i have to tell you something, they took the thing right to the woodshed. that's right. it plummeted 13% on the one bad number and i have to tell you also, i think that lulu, it delivered every bit of the hideous number that some of th

newell rubbermaid is buying jarden corp in a cash&stock -- in a cash and stock deal. jennifer: the deal creates a $16 billion consumer goods company. the merged companies will go by the name newell brands. the company owns brands like mate, sharpie, elmer' s, -- paper mate, sharpie, elmer' s, rubbermaid and graco. the second quarter of next year. the sale still needs to be approved by shareholders of both companies. josh: kinder morgan saw a 75% cut in its quarterly dividends. shares for the texas-based energy giant are now at $12.05 per share. the cut is to help conserve money for financing parts of its expansion projects including one in southern new hampshire. falling oil prices and energy costs are partly to blame for the cuts. jennifer: amazon appears to have removed some hoverboards from it' s online store due to safety concerns. there have been at least 10 reports of hoverboard fires in nine states in recent weeks and the consumer products safety commission is investigating. the decision by amazon follows a similar move by major airlines to ban the boards from t

the ceo of newell rubbermaid.nk you so much to both of you. >> thanks, jim. >> coming up, gone rogue? wall street debt is raising eyebrows and causing concern across the market culminating with locking it's investors out of its cash next week. could this move ripple through your money and sit lurking in your portfolio. don't miss cramer's take just ahead. ♪ >> last week, everyone's favorite take over target, lululemon reported a suboptimal quarter and i have to tell you something, they took the thing right to the woodshed. that's right. it plummeted 13% on the one bad number and i have to tell you also, i think that lulu, it delivered every bit of the hideous number that some of the bears were expected. it was maybe an unredeemable quarter but i found myself wondering if lulu's results were that horrendous. sure the company missed wall street estimate top line and bottom line but they did deliver an incredible 9% increase in same store sales at a time when retailers are struggling to put up descent comps. i like t

newell rubbermaid acquiring jarden. some interesting moves in both of those companies. stocks newell down. jarden is up by about 2%. we did speak to both ceos on cnbc but some hedge funds are trying to make sense of the spread between those deal prices. after dow and dupont announced their historic merger on friday, an activist calling yet again for dow ceo to step down. he would be remaining with the combined company. but those stocks down about 4.5%. john. >> coming up on squawk alley, more on the moves this morning in commodities and higher dead and what it means for the market. plus, organized labor for uber. why uber and lift drivers may unionize in one city soon. and a miserable year, at least not so good for tech ipos. will 2016 be any better? when squawk alley comes back. but at t. rowe price, we can help guide your investments through good times and bad. for over 75 years, our clients have relied on us to bring our best thinking to their investments so in a variety of market conditions... you can feel confident... ...in our experience. call a t. rowe price retir

newell rubbermaid and jarden will merge. >> this is one of the relatively unsung stories of the year.& a tops $2 million for the first time. rationalizing costs, getting start about taking those out of the system and acquiring others, so it looks like a good deal. >> the dow/due pond deal getting more interesting. the ceo of dow under fire in some respects. calling for his removal following that deal. was in a letter apparently sent from third point to the board of the situation -- >> pretty aggressive move. you just talked about deals, $130 billion deal here is what we're talking about with dow and dupont. we all thought going into this thing obviously there was a time frame. and now mr. liveris we thought was going to be taking over. it looks like dan loeb does not want that to happen. a lot of pressure. that's why we're seeing so much pressure on both stocks. >> while he remains in favor of the deal, the market may be trading today as if it perceives that he's not, when, in fact, the reports say there is. >> he's in favor of the deal. >> he just wants somebody out in all ways, shap

in other deal news, newel newell rubbermaid. it just rolls off the tongue. consumer products giant jarden and it will be newel newell rubbermaid, jarden at that point. >> nrj? >> yeah. >> they have a lot of make up. >> for garbage cans. >> no, one of my favorite data points was the beauty index. >> they sell make up. >> they have a grab bag of stuff. >> tupperware sells make up t. brand confusion. >> i could see that. >> so you get it. >> you live in the world of make up. >> no longer print at all. >> you live in the world of make up. >> you don't write for us. >> i do but i don't consider it print. >> it's the same online and the physic physical. >> i was confused because we said that andrew and becky are out and mike santoli were out. i thought you were not the guest host but an actual host because if you're an actual host you have to take the jacket off. >> i was wondering about that. >> and read teleprompter. but you're guest hosting at this point. leave the jacket on then. it looks great. beautiful. hair is just -- man. >> it's striking. >> all right. ve

scarlet: newell rubbermaid makes household goods. i cannot get my words out today. court says directv can avoid a class action lawsuit in call-up on over early termination and can force companies -- customers into private arbitration hearings instead. you can always get more business news at bloomberg.com. scarlet: this wednesday is not only a big day for the fed but also howard stern. his contract with sirius xm will end, but his next move is still unknown. the ceo and president of liberty media spoke to stephanie ruhle last week on the appeal of the seti like radio company and the stars future. >> there are a lot of reasons why people subscribe to serious xm. people love the music, the cure ration, but people love the ease commercials,ack of and then they love exclusive content like howard stern. stephanie: is he staying? >> nothing to announce today, but we are introduced to have been. like nfl,her content major league baseball, even bloomberg radio. howard stern is 62 years old and remains one of the top earners in radio. his contract cost about $80 million each

we had the executive chairman of jarden and ceo of newell rubbermaid.deal did not get a good reception. >> not at all. >> dupont and dow, not particularly well received, pfizer/allergan. there have been a series of deal announcements that have been different from the reception in the marketplace, through this incredible year of merger and acquisition activity, you saw the acquirer stock price go up. a lot of people like that newell deal. everybody gave me some explanation, none added up to much. >> people say jarden is like, wild, untamed bees. newell is buttoned down. hawk is a good manager that would have been the best performer in the so-called consumer package industry. they can get jarden. they can do a lot with it. they can go to walmart, say we're powerful, too. my travel trust owned dow, i said he did this great thing, and yesterday dan lobe said the deal was done because of -- >> he likes the deal. >> he likes the deal, but he made me feel the deal was stupid. that's not in his interest, that's the takeaway. the money is coming out of this mark

newell rubbermaid is 18%. >> the last acquisition confused people. >> by jarden. a $1.5 billion deal. >> when i spoke to martin franklin, co-founder of -- co-chairman. mr. lily runs the company. >> martin has other things going on. one is platform, one is nomad. he has a lot on his plate. built this company over the last 15 years through a series of acquisition after acquisition. >> mr. -- >> there's some products we're talking about. >> he has bought back stock. you have to take a longer-term view of what martin has done which is very, very strong. he has revitalized the brands he's bought. has a lot of space. he once took a tape measure to different stores. mr. polk from unilever who runs newell, was on "mad money" recently. he has revitalized that whole place. not on >> 10,000 mergers and acquisitions this year. >> 10,000? >> 10,000. >> and the ftc, whether it's ge, electrolux, regulators have finally said that's enough. >> you can't just -- >> too many. >> i saw the ftc -- you know, there is such a thing as -- do they not factor in retailers have to get togeth

and then just late today this deal announced between newell, rubbermaid and jarden. >> i wonder if we could look at kinder morgan intraday. it's a pipeline company, oil pipeline company and on friday they announced they were reviewing the dividends, didn't say they were cutting it and that's created a second wave of panic in the oil market, not just oil being below $40 but could the dividends be cut for some of the big oil companies as well. there is a whole little panic about that. for the moment the big oil companies, the exxonmobils and chevrons of the world are integrated ultimately national companies, they are not can you get the dividend right now but there is a crowd that believes lower for longer is going to be the mantra. we could have $40 oil a year from now in 2017. if that's the case even big guys like exxon and chevron could have potential problems with the dividend. it's expensive. exxon is a billion dollars a month, somewhere around there. >> that's the bayout. >> it's huge. it's about 25% of the tax flow. >> chevron is 5%. 5%. >> now, this is one of the concerns. remem

what would a monday be without a big merger to tell you about, this time it's newell rubbermaid buyingn for $13 million. the company that makes sharpees with the one behind yankee candles, although many other brands behind this deal. the combined company will go by the name of newell brands. jarden going by the wayside here. >> our dominic chu is taking a closer look at what exactly is in these etfs that many retail investors use to invest in high yield. >> what's interesting about this whole discussion right now is this idea that if you are an investor and want to invest in high yield or junk bonds typically you do your financial advisors, pick bonds and allocate them to your portfolios or buy the etfs. hyg, this is the i shares i box high yield corporate, it's a smoutful, the ticker is hyg, you will often hear it referred to in that way. the reason why it's important it's the biggest exchange traded fund that tracks that high yield or junk bond part of the market, it's got $15 billion in assets and again, it tracks an index of these overall bonds, not specific parts of the bonds curv

rubbermaid, and jarden are merging. coleman outdoor sharpe markers, parker pens, the company is going to be called newell brands and will close in the new year. we have the rubbermaid down, they are largely the acquiring company and often those stocks move lower as a result. >>> so, are you ready for the and have you purchased your popcorn and soda? no? well what are you waiting for? the new york times reporting that the two biggest theaters chains throughout, amc and regal cinema are allowed to preorder food and it'll be waiting for you when you arrive at the theater. and with preassigned seating, it gets better, they'll deliver the food to your seat. all of this of course going to make it much easier for people going to the movies. for those who stay home because it's just too crowded or it's too much of a hassle, you don't like the crowds, and you know, this is where the theaters make their money is in the food. that's where the margins are. and they want to make it as easy as possible for you to buy as much of that food as you want. so, these apps are going to be very big for these theater than chains. we'll see. >>