UnitedHealth Group Inc (NYSE:UNH, ETR:UNH) and Amedisys (NASDAQ:AMED) have agreed to extend the deadline for their $3.3 billion merger, facing ongoing scrutiny from the US Department of Justice (DOJ).
The companies announced in a regulatory filing that the merger deadline will now be extended to 10 days after a final court decision is issued or December 31, 2025, whichever comes first.
This development follows a lawsuit filed over a month ago by the DOJ and attorneys general from Maryland, New Jersey, and New York to block the merger.
Regulators argue that the deal would reduce competition in the home health services market, potentially harming patients, insurers, and nurses.
The original deadline for the merger was set for today.
Under a new waiver agreement, the companies have adjusted financial terms, including a regulatory break fee of $275 million, which could rise to $325 million if specific asset divestitures are not completed by May 1.
Other modifications to the agreement include changes to operational restrictions and conditions tied to government approvals.
UnitedHealth first announced plans to acquire Amedisys in June 2023, seeking to integrate the home health and hospice care provider into its operations.
Despite the regulatory challenges, the companies remain committed to completing the deal, which they believe will deliver significant synergies and growth opportunities.
Shares of Amedisys added 4.7% at $90 on the update, while UnitedHealth stock was down 0.5% at about $508.