When Baker Hughes and Halliburton called off their merger, CNBC's Jim Cramer wasn't surprised, saying the decision to pursue the deal was based on advice that was "so stupid it really is rather extraordinary."
The two oilfield services companies ditched their $28 billion merger after antitrust concerns surfaced from a regulatory lawsuit. Haliburton will pay a $3.5 billion breakup fee for the axed merger, according to Reuters.
The companies had expected the merger to result in "compelling benefits" as the U.S. oil industry battles with historically low prices amid oversupply, according to a statement.
"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' CEO, said in the statement.