(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 ( UNH ) and Amedisys ( AMED ) 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)