Shares of Baker Hughes fell and Halliburton rose Monday as investors shrugged off news of the two firms' merger breaking down.
"We think investors had been anticipating the high probability of a deal break since the DoJ filed suit to block the merger in early April," analysts at Nomura said in a Monday note to clients.
The companies announced the termination of their $28 billion merger Sunday, citing regulatory pressures as the main reason.
"Today's outcome is disappointing because of our strong belief in the vast potential of the business combination to deliver benefits for shareholders, customers and both companies' employees," Martin Craighead, Baker Hughes chairman and CEO, said in a statement Sunday.
On Monday, Baker Hughes's stock fell 1.99 percent, while Halliburton's rose 1.79 percent.
"The termination outcome was the best possible result for HAL given the likely challenges in achieving targeted synergies due to the protracted nature of the downturn, and the reality that the $3.5 billion breakup fee payment was already baked into the shares, in our view," Nomura said.
Shares of Baker Hughes are up just 2.7 percent for the year, but have gained nearly 16 percent in the past three months.
BHI in 2016
Halliburton shares are up more than 23.5 percent year to date.
HAL year to date