UnitedHealth Group (NYSE: UNH) and Amedisys (Nasdaq: AMED) have extended the deadline to finalize their merger agreement until 2025, as stated in a filing on Dec. 27. The merger is currently under close scrutiny by the U.S. Department of Justice (DOJ), which filed a lawsuit on Nov. 12 to block the takeover, labeling it as “presumptively anticompetitive and illegal.”

Additionally, the states of Maryland, New Jersey and New York have joined in the effort to impede the merger.

In June 2023, it was announced that Optum, the diversified health care services arm of UnitedHealth Group, would acquire Amedisys in an all-cash deal worth approximately $3.3 billion.

The companies have signed a new waiver agreement that extends the deadline for their merger to either ten days after the final court decision in the ongoing DOJ lawsuit or Dec. 31, 2025, whichever comes first, according to the filing. The original deal was expected to close by Dec. 27.

The new waiver includes a regulatory break fee of $275 million, which may increase to $325 million if specific conditions are not met by May 1, as stated in the filing.

Amedisys, based in Baton Rouge, Louisiana, provides home health, hospice and higher-acuity care services in 522 locations in 37 states and the District of Columbia.

Before entering into a deal with UnitedHealth Group, Amedisys planned to merge with Option Care Health (Nasdaq: OPCH). That merger fell apart after Optum made a competing offer, effectively outbidding Option Care Health.

Optum already owns LHC Group, which is one of the largest home health providers in the country. If the Amedisys takeover goes through, Optum will be by far the largest home health provider in the country.