WASHINGTON — Two companies crucial to the business of U.S. energy exploration — Halliburton and Baker Hughes — have abandoned their planned $34 billion merger.
The companies and the Justice Department disclosed the plans on Sunday.
The department filed suit April 6 to block the merger of Halliburton and Baker Hughes. It claims the transaction would unlawfully eliminate significant competition in almost two dozen markets crucial to the exploration and production of oil and natural gas in the United States.
"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," Attorney General Loretta E. Lynch said in a statement on Sunday.
Justice officials said the merger of Halliburton and Baker Hughes would have raised prices, decreased output and lessened innovation in at least 23 oilfield products and services critical to the nation's energy supply.
As part of the agreement, Halliburton will pay Baker Hughes the termination fee of $3.5 billion by Wednesday, according to a joint release from the companies.
Read Tuesday's Arkansas Democrat-Gazette for full details.