A merger agreement between Baker Hughes and Halliburton ended up with the two companies deciding to call off the deal that was reportedly worth $28 billion.

Halliburton will pay a termination fee worth $3.5 billion to Baker Hughes by Wednesday, following an announcement that said the termination had taken effect on April 30.

"While both companies expected the proposed merger to result in compelling benefits to shareholders, customers and other stakeholders, 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," said Chief Executive Officer and Chairman Dave Lesar of Halliburton.

Lesar added that while the decision to call off the merger is disappointing, the company managed to remain strong and continues to focus on helping its customers in maximizing production while keeping costs at its most affordable rate.

The deal, which two companies formally agreed to back in November 2014, faced opposition from antitrust regulators in Europe and in the United States. It could have brought together two oil services companies, globally ranked at second and third, into becoming a duopoly, leaving several oilfield service markets in their hands.

In other words, there would only be two dominant suppliers to cover 20 business lines within the field of global well drilling and oil construction services. One would be the merged businesses of Baker Hughes and Halliburton, and the other would be Schlumberger NV.

U.S. Attorney General Loretta E Lynch says the companies' decision to terminate the merger agreement is a victory not only for the U.S. economy, but also for all Americans.

Regulators in Europe, Brazil and Australia along with the DOJ have heavily scrutinized the merger and expressed concerns that it could result to increased prices in the oilfield services industry or decreased competition and innovation.

The canceled merger is also a major blow to investment banking groups, which served as advisers to the companies during the course of the deal. Baker Hughes was advised by Goldman Sachs Group Inc, while Halliburton had Credit Suisse Group AG as its lead financial adviser, along with Bank of America Corp.

The fee for financial advising, which usually ranges at a percentage point of the merger value, is largely affirmed once the transaction is finalized.

Halliburton is set to discuss the aborted merger agreement on Tuesday, May 3, in a conference.

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