Investing.com – Shares of Halliburton (NYSE:HAL) and Baker Hughes Incorporated (NYSE:BHI) jumped higher after the U.S. Department of Jusitice (DoJ) filed suit to block the merger of the two oil services firms.
“The proposed deal between Halliburton and Baker Hughes would eliminate vital competition, skew energy markets and harm American consumers,” said Attorney General Loretta Lynch in a statement Wednesday.
After the DoJ filed the lawsuit to block the combination of the number 2 and 3 companies in the industry, shares in both firms rose by around 5% at 14:16GMT or 10:16AM ET.
Halliburton and Baker Hughes planned to contest the move as they believe that the divestiture package is sufficient to deal with the claims.
Halliburton reportedly hired two antitrust litigators Rechard O’Melveny & Myers and Stephen Weissman of Baker Botts, according to sources cited by CNBC.