(Reuters) -UnitedHealth (UNH) and Amedisys (AMED) have agreed to extend the deadline to close their $3.3 billion merger agreement to next year, a regulatory filing showed on Friday.
The extension comes more than a month after the U.S. Department of Justice and three U.S. states filed a lawsuit to block the acquisition, citing concerns that the deal would reduce competition in the home health services market.
The companies have entered into a new waiver agreement, which extends the merger deadline to 10 days after a final court decision is issued in the lawsuit or Dec. 31, 2025, whichever is earlier, the filing said.
UnitedHealth and Amedisys had earlier expected to close the merger by Dec. 27, 2024.
The new waiver agreement includes a regulatory break fee of $275 million, which may increase up to $325 million, if the companies fail to divest some assets.
(Reporting by Sriparna Roy in Bengaluru; Editing by Anil D’Silva and Shilpi Majumdar)
