Dec 27 (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)