UnitedHealth and Amedisys Extend Merger Deadline as DOJ Blocks Deal
UnitedHealth and Amedisys have agreed to extend the deadline for their $3.3 billion merger to next year, following close scrutiny from the U.S. Department of Justice. The deal, initially expected to be completed by December 27, will now close 10 days after a final court decision is issued in the lawsuit or December 31, 2025, whichever is earlier.
The merger has faced opposition from the DOJ and three U.S. states, including Maryland, New Jersey, and New York, who have filed a lawsuit to block the deal, citing concerns that it would reduce competition in the home health services market. The authorities have argued that eliminating competition between UnitedHealth and Amedisys could harm patients, insurers, and nurses who provide home health and hospice services.
Amedisys’ shares rose 3.5% in premarket trading following the news, while UnitedHealth said in June last year that it would acquire the company. Analysts had anticipated regulatory scrutiny due to UnitedHealth’s presence in the home health sector.
The companies have entered into a new waiver agreement, which includes a regulatory break fee of $275 million, potentially increasing to $325 million if they fail to divest some assets by May 1. This is not the first time that UnitedHealth has faced regulatory challenges, having previously had its acquisition of Change Healthcare, a tech unit, halted by the DOJ in February 2022, only to be completed later that year.
