Activision Blizzard and Microsoft agreed on Wednesday to extend the deadline for their merger agreement to Oct. 18 as the companies continue to work on gaining approval from regulators.

"Given global regulatory approvals and the companies’ confidence that CMA now recognizes there are remedies available to meet their concerns in the UK, the Activision Blizzard and Microsoft boards of directors have authorized the companies not to terminate the deal until after October 18," Activision Blizzard CCO Lulu Cheng Meservey said in a tweet.

The two U.S. companies originally agreed to close the deal by July 18, but U.S. regulatory efforts to block the takeover and Britain's push to restructure it have delayed the close.

The U.S. Federal Trade Commission's (FTC) bid to temporarily stop the deal was denied twice, first by a federal judge and then by an appeals court.

Britain's Competition and Markets Authority (CMA) had earlier decided to block the deal, but reversed course last week and extended its deadline for a final ruling to Aug. 29 after the U.S. court ruling left Britain alone in opposition.

Regulators in both countries have varying concerns over the deal.

Reuters contributed to this report.