SandRidge Energy Inc. and Bonanza Creek Energy Inc. said they have agreed to terminate their merger agreement, under which SandRidge would have purchased Bonanza for $746 million.

After consultation with its largest shareholders, SandRidge's board of directors concluded that it would not receive approval for the transaction at its planned special meeting, according to the companies' separate announcements Dec. 28. Important shareholders, including Carl Icahn's Icahn Capital LP and Fir Tree Partners, had been against the deal. An agreement between Bonanza and SandRidge was then reached to mutually terminate the merger agreement.

As part of the mutual termination agreement, SandRidge will reimburse Bonanza for transaction-related expenses up to $3.7 million.

"While we are disappointed with this result, we are very pleased with the progress that Bonanza Creek has made this year and will continue to focus on developing Bonanza Creek's assets and maximizing value for our shareholders," Jack Vaughn, the chairman of Bonanza's board, said in a statement.