Microsoft and Activision Blizzard agreed to extend a closing date for an acquisition of the games publisher, to iron out remaining regulatory concerns.

The companies pushed the deadline from 18 July to 18 October, with increased break up fees if the deal fails to go through.

Microsoft could have faced a $3 billion break fee if it had not secured an extension.

The charge will now be increased to $3.5 billion if both companies terminate the transaction by 29 August and $4.5 billion if a mid-September date is missed.

Activision Blizzard’s board agreed to pay a 99 cents per share dividend to the company’s shareholders in attempt to win their approval for the deal.

In a tweet, Microsoft president and vice chair Brad Smith stated the amended deadline allows it “to focus on addressing comprehensively and properly the UK’s statutory requirements while sustaining fully our obligations across the EU”.

Microsoft is working on gaining approval for the deal from authorities in the US and UK.