01:44 PM EST, 12/27/2024 (MT Newswires) -- (Updates to include UnitedHealth's ( UNH ) response in the seventh paragraph.)

UnitedHealth Group ( UNH ) and Amedisys ( AMED ) agreed to extend the deadline of their proposed merger as the deal faces scrutiny from the US Department of Justice over competition concerns.

UnitedHealth ( UNH ), through its Optum subsidiary, agreed in June 2023 to acquire home health and hospice services provider Amedisys ( AMED ) for $101 per share in cash. The deal requires regulatory approval to be completed.

Last month, the Justice Department, along with the attorneys general of Maryland, Illinois, New Jersey and New York, filed a lawsuit in Maryland against the planned transaction over competition concerns.

The companies have now agreed to extend the deal's completion deadline to 10 days after a final court decision is issued in the DOJ lawsuit or Dec. 31, 2025, whichever is earlier, Amedisys ( AMED ) said in a filing with the Securities and Exchange Commission.

The companies previously expected the transaction to close by Dec. 27, Reuters reported.

The new waiver agreement includes a regulatory break fee of $275 million, which may increase to up to $325 million if the companies fail to divest certain assets to gain approval, the latest filing showed. "Certain closing conditions relating to government approvals are no longer conditions to the consummation of the merger," according to the filing.

UnitedHealth ( UNH ) said in a statement to MT Newswires that the company had "nothing more to share" beyond the details mentioned in the filing. Shares of the health insurer edged down 0.4% in Friday trading, while Amedisys' ( AMED ) gained 4.5%.

"We are challenging this merger because home health and hospice patients and their families experiencing some of the most difficult moments of their lives deserve affordable, high quality care options," US Attorney General Merrick Garland said in a Nov. 12 statement. "The Justice Department will not hesitate to check unlawful consolidation and monopolization in the healthcare market that threatens to harm vulnerable patients, their families, and health care workers."

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