Two U.S. oil-drilling giants became one on Monday, when Houston-based companies Halliburton and Baker Hughes agreed to a $34.6 billion merger.

The deal came soon after talks between the two competitors broke down and Halliburton indicated the possibility of a hostile takeover of Baker Hughes, the New York Times reported.

Halliburton, controversial for its role in the 2010 Deepwater Horizon oil rig explosions, will retain its name in the new combined entity, and its chief executive and chairman David J. Lesar will take the helm.

The combination of the two companies’ resources, including operations and research and development, will save over $2 billion in costs and help them compete with industry leader Schlumberger.

Read more at the Times

Write to Rishi Iyengar at rishi.iyengar@timeasia.com.