Halliburton C. and Baker Hughes Inc. have thrown in the towel for their $28 billion merger deal after opposition from US and European antitrust regulators. The agreement would have brought together the number 2 a nd 3 oil services companies, but it worried many that it would have resulted in higher prices in the sector. As Dave Lesar, chief executive of Halliburton said, “Challenges in obtaining remaining regulatory approvals and general industry conditions that severely damaged deal economics led to the conclusion that termination is the best course of action.”
Halliburton will now have to pay Baker Hughes a $3.5 billion breakup fee by Wednesday as a result of the end of the deal.
As U.S. Attorney General Loretta Lynch said in a statement on Sunday, “The companies’ decision to abandon this transaction – which would have left many oilfield service markets in the hands of a duopoly – is a victory for the U.S. economy and for all Americans.”
Read more about the situation and the feelings on both sides with the full article here.