Shares of Halliburton are trading down almost 10 percent Monday after the oil company agreed to buy its rival Baker Hughes for almost $35 billion.

The two companies will combine their operations, but the deal will not close until the middle of 2015.

Halliburton is agreeing to buy Baker Hughes at a value of $78.62 per share. That's well above Friday's closing price of $59.89.

Baker Hughes investors are applauding the deal that gives them 1.12 shares of Halliburton and $19 in cash for every share of Baker Hughes that they own.

The deal has been discussed since late June and sent shares of Baker Hughes tumbling from $75 to as low as $51 a share.

With oil prices falling worldwide, oil companies have little choice but to delay or stop drilling. Halliburton hopes that the combined company will be able to save $2 billion a year.

Halliburton definitely seems to have overpaid for Baker Hughes, but the company needed to find a way to make the slip in oil prices work for them.

The takeover by Halliburton was hostile at times. Friday, Baker Hughes said that Halliburton refused to increase its first offer. Monday, that changed, and Halliburton made the near $35 billion offer.

With both boards approving the deal, Halliburton looks to use some of Baker Hughes' advanced drilling systems and technologies to increase their oil production.

The deal between Halliburton and Baker Hughes is the biggest oil deal since 2010 when Schlumberger (SLB) bought Smith International for over $11 billion.

The reason why the Halliburton and Baker Hughes deal is triple the size is the size of the two companies.

[Halliburton and Baker] "have a bigger footprint than Smith did," Stewart Glickman energy equity analyst at S&P Capital IQ told USAToday.

What do you think of this combined company? Leave us a comment below and let us know.