UnitedHealth Group Inc (NYSE:UNH, ETR:UNH) and Amedisys (NASDAQ:AMED) have agreed to extend the deadline for their $3.3 billion merger, facing ongoing scrutiny from the US Department of Justice (DOJ). The companies announced in a regulatory filing that the merger deadline will now be extended to 10 days after a final court decision is issued or December 31, 2025, whichever comes first. This development follows a lawsuit filed over a month ago by the DOJ and attorneys general from Maryland, New Jersey, and New York to block the merger. Regulators argue that the deal would reduce competition in the home health services market, potentially harming patients, insurers, and nurses. The original deadline for the merger was set for today. Under a new waiver agreement, the companies have adjusted financial terms, including a regulatory break fee of $275 million, which could rise to $325 million if specific asset divestitures are not completed by May 1. Other modifications to the agreement include changes to operational restrictions and conditions tied to government approvals. UnitedHealth first announced plans to acquire Amedisys in June 2023, seeking to integrate the home health and hospice care provider into its operations. Despite the regulatory challenges, the companies remain committed to completing the deal, which they believe will deliver significant synergies and growth opportunities. Shares of Amedisys added 4.7% at $90 on the update, while UnitedHealth stock was down 0.5% at about $508.
UnitedHealth Group Inc (NYSE:UNH, ETR:UNH) and Amedisys (NASDAQ:AMED) have agreed to extend the deadline for their $3.3 billion merger, facing ongoing scrutiny from the US Department of Justice (DOJ). The companies announced in a regulatory filing that the merger deadline will now be extended to 10 days after a final court decision is issued or December 31, 2025, whichever comes first.
Panic sellers have bailed out of UnitedHealth stock as the leading healthcare sector leader took a significant hammering. Despite structural headwinds, UNH's diversified business model, particularly its profitable Optum segment, underpins its solid profitability and positions it well against smaller peers. UNH's valuation has dropped below its 10-year average, making it reasonably valued and an attractive opportunity for aggressive dip-buying.
UnitedHealth Group (UNH) closed the most recent trading day at $506.10, moving -0.05% from the previous trading session.
The latest trading day saw UnitedHealth Group (UNH) settling at $506.34, representing a +1.24% change from its previous close.
UnitedHealth Group's recent price pullback presents a buying opportunity for long-term dividend growth investors, despite the CEO's death and short-term volatility. Strong fundamentals: Q3 earnings beat estimates with EPS of $7.15 and revenue at $100.8 billion, showing robust top and bottom line growth. Sustainable dividend growth: Dividend increased by 11.70%, supported by strong cash flows and a solid balance sheet with $32.4 billion in cash.
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
UnitedHealth Group (UNH) shares have been on the decline since the CEO of its UnitedHealthcare unit was killed in New York City on Dec. 4.
UNH faces challenges such as rising medical costs and regulatory pressures. However, it boasts robust cash flow and consistent dividend growth.
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The stock price of the health insurer has tumbled 21% since a top executive was murdered on Dec. 4.
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