Pavlo Gonchar | Sopa Photographs | Lightrocket | Getty Photographs
UnitedHealth and Amedisys have agreed to increase the deadline to shut their $3.3 billion merger settlement to subsequent yr, a submitting confirmed on Friday, because the deal faces shut scrutiny from the U.S. Division of Justice.
The extension comes greater than a month after the DOJ and three U.S. states filed a lawsuit to dam the deal, citing considerations that it could scale back competitors within the residence well being providers market.
The businesses have entered into a brand new waiver settlement, which extends the merger deadline to 10 days after a remaining courtroom determination is issued within the lawsuit or Dec. 31, 2025, whichever is earlier, the submitting stated.
Shares of Amedisys rose 3.5% in premarket buying and selling.
UnitedHealth stated in June final yr it could purchase residence well being and hospice caregiver Amedisys. Analysts, nevertheless, anticipated regulatory scrutiny because of the healthcare conglomerate’s presence within the residence well being sector.
Eliminating competitors between UnitedHealth and Amedisys can hurt sufferers who obtain residence well being and hospice providers in addition to insurers who contract for and nurses who present these providers, the DOJ has stated.
The attorneys normal of Maryland, New Jersey and New York are additionally suing to dam the merger.
The businesses had earlier anticipated to shut the deal by Dec. 27. The brand new waiver features a regulatory break price of $275 million, which can improve to $325 million, in the event that they fail to divest some property by Could 1.
The justice division had beforehand sued to halt UnitedHealth’s acquisition of tech unit, Change Healthcare, in February 2022, however the deal was accomplished later that yr.
Source link