US ice cream maker Dreyer’s Grand Ice Cream has said that itself and Nestlé have agreed to allow more time for Nestlé’s proposed $2.5bn takeover of Dreyer’s to win regulatory approval.

The two companies agreed to extend the 16 June deadline, after which either side could terminate the deal, until 30 June in order to provide more time to obtain clearance by the US Federal Trade Commission.

Nestlé said last month it was confident of winning regulatory clearance despite FTC concerns about the merged company’s dominance in the premium ice cream market, reported Reuters.