The lawsuit filed by the DOJ argues that the merger of Halliburton and Baker Hughes, two of the three largest oil companies, would raise prices, reduce competition and hamper innovation in the industry. The two companies are looking to fight the lawsuit.
Halliburton has been working to gain approval from regulators for the merger. If it can’t, it will have to pay a $3.5 billion termination fee to Baker Hughes. The deal has a termination date of April 30, but BHI may choose to extend it beyond that, reports TheStreet.com
Halliburton has sold off $7.5 billion in businesses and assets in order to receive approval from the DOJ for the merger. However, that wasn’t enough and sources claim the DOJ wants the company to sell a total of $10 billion in businesses and assets off for approval of the deal.
HAL shares were up 5% and BHI shares were up 6% as of Wednesday afternoon.
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