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Key Takeaways
- UnitedHealth Group and Amedisys agreed to extend the deadline to complete their $3.3 billion merger.
- The deal had been expected to be completed this week, but federal and state regulators moved to block it, and the challenge is currently before a Maryland court.
- The deal’s new deadline is 10 days following the court’s ruling or Dec. 31, 2025, whichever comes first.
UnitedHealth Group (UNH) and Amedisys (AMED) agreed to extend the deadline to complete their $3.3 billion merger, after the U.S. Department of Justice moved to block it.
The deal was announced in June of last year and had been expected to be completed this week, but the Department of Justice and state regulators moved last month to block it, arguing it could give UnitedHealth much control in the market for home health and hospice services. The case is currently in front of a federal judge in the District of Maryland.
In a regulatory filing Friday, Amedisys said the two firms waived their right to terminate the agreement until the 10th business day following the final order of the court, or Dec. 31, 2025, whichever comes first.
The new waiver includes a regulatory breakup fee of $275 million, which could go as high as $325 million, if the companies fail to divest certain assets by May 1.
Amedisys shares were up over 4% in early trading Friday following the news, while UnitedHealth shares were little changed.
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