Halliburton and Baker Hughes have terminated their agreement to merge, the companies announced on Sunday. Halliburton CEO Dave Lesar cited challenges in obtaining regulatory approvals and general industry conditions in a statement regarding the decision.
First announced in November 2014, the future of the deal became uncertain last summer amid reports that U.S. antitrust officials were concerned about its potential impact on competition in the oilfield services market. The Department of Justice filed a lawsuit to block the deal last month.
Halliburton must now pay a Baker Hughes a breakup fee of $3.5 billion as part of the initial agreement.
