Amedisys Inc. (NASDAQ: AMED) and UnitedHealth Group (NYSE: UNH) planned to meet with the U.S. Department of Justice (DOJ) this week to discuss their pending acquisition. However, DOJ has reportedly postponed any decisions until after the election.
The postponement makes a DOJ lawsuit to block the deal less likely, though not impossible, before the Oct. 31 deadline to file. The Connecticut-based news service CTFN first reported the news, citing two unnamed sources “close to the deal,” as well as two anonymous attorneys that have been “following the transaction.” That report is not available online.
“It is still possible that the merging parties and the DOJ can come to an agreement that allows the merger to proceed, according to the first and second sources,” CTFN indicated. “The first source maintains that no decision has yet been made, while the second source said they believe it is more likely than not that the merger is consummated without the need for litigation. Should, however, the DOJ choose to challenge the merger, United Health is expected to stick through litigation of the matter.”
The UnitedHealth Group subsidiary Optum in June 2023 agreed to acquire Amedisys in a $3.3 billion deal. Optum in February 2023 also acquired the home health and hospice provider LHC Group for $5.4 billion.
Bloomberg first reported on the DOJ meeting, which was initially set to occur this week. A decision on the matter could have been postponed for any number of reasons. Among them is the uncertainty as to whether an incoming administration, be it Donald Trump or Kamala Harris, would continue President Joe Biden’s staunch antitrust policies.
Biden signed an executive order six months after taking office designed to strengthen oversight of mergers and acquisitions, with a focus on health care and other sectors.
The DOJ meeting will include Jonathan Kanter, assistant attorney general for the DOJ’s Antitrust Division, Bloomberg reported. The possibility also exists that Kanter would be replaced by an incoming president as part of a routine changing of the guard, which could have affected the timing of the meeting.
In order to mitigate antitrust concerns, Amedisys has agreed to sell some of its locations to the PE-backed home health and hospice provider VitalCaring, possibly more than 100. The VitalCaring transaction is contingent on approval of the UnitedHealth Group acquisition.
Even without a lawsuit, the DOJ meeting could result in further changes to the Amedisys transaction, including the divestiture of more locations. This includes the possibility that closure of the deal could be further delayed to 2025.
Amedisys and UnitedHealth Group did not respond to Hospice News’ requests for confirmation.