UnitedHealth Group and Amedisys Extend $3.3B Merger Deadline to 2025 Amid DOJ Challenges
UnitedHealth Group and Amedisys have pushed back the deadline to finalize their $3.3 billion merger following regulatory hurdles from the Department of Justice, with a new completion target set for late 2025.
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Key Insights
- The $3.3 billion merger between UnitedHealth Group and Amedisys faces a delayed completion timeline.
- Federal and state regulators, including the DOJ, have challenged the merger over market control concerns, currently under review by a Maryland federal court.
- The merger deadline is extended to 10 business days after the court ruling or December 31, 2025, whichever occurs first.
UnitedHealth Group (UNH) and Amedisys (AMED) have mutually agreed to extend their merger deadline following intervention by the U.S. Department of Justice, which aims to block the $3.3 billion deal citing antitrust concerns in home health and hospice services markets.
Originally announced in June last year, the merger was slated for completion this week but has been delayed due to regulatory scrutiny. The ongoing legal proceedings in Maryland will determine the deal’s fate.
According to a recent regulatory filing, both companies waived their termination rights until 10 business days after the court’s final decision or December 31, 2025, setting a new timeline for merger closure.
The agreement includes a regulatory breakup fee starting at $275 million, potentially rising to $325 million if certain asset divestitures are not completed by May 1.
Following the announcement, Amedisys stock rose by over 4% in early trading, while UnitedHealth shares remained relatively stable.
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