Halliburton and Baker Hughes call off $28bn deal

Oil giants Halliburton Co. and Baker Hughes Inc. terminated their $28bn merger deal amid regulatory pressures.

The companies had announced the deal in November 2014 to compete with no. 1 firm Schlumberger Ltd. The companies had set a deadline by end of April 2016, to either come up with an outcome or end the deal.

Baker Hughes would receive a termination fee of $3.5bn from Halliburton by 4 May 2016.

The U.S. Justice Department filed a lawsuit in early April to stop the merger, saying it threatened to eliminate head-to-head competition in 23 products and services used in oil exploration.

Source: Bloomberg