UnitedHealth: deadline extended for merger with Amedisys

(CercleFinance.com) - UnitedHealth and Amedisys have announced that they have extended the deadline for finalizing their planned merger, which is currently opposed by the US Department of Justice (DoJ).


This news comes after the administration filed a civil antitrust suit last month, alongside the states of Maryland, Illinois, New Jersey and New York, over the deal, worth about $3.3bn.

The DoJ said that it is concerned about the consequences of the transaction, which it believed could eliminate competition in the home healthcare and geriatrics sectors.

Since UnitedHealth's acquisition of part of LHC's business last year, the two groups have been among the top three players in the US market, Washington points out.

In a financial notice issued last night, UnitedHealth and Amedisys informed the US Securities and Exchange Commission (SEC) that they had entered into a waiver agreement to extend the deadline originally set for the end of the year.

Under the new terms, the merger is expected to close within ten days of the final SEC ruling, and by December 31, 2025 at the latest.

The termination fee has been set at $275m, or $325m in the event of failure to meet certain regulatory milestones relating to asset disposals.


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