Swiss food giant Nestlé is reported to have reached an agreement with US regulators that should allow it to complete its US$2.8bn purchase of Dreyer’s Grand Ice Cream as early as next week.

The two companies signed an agreement late last week to sell three of Dreyer’s “super-premium” ice cream brands, Dreamery, Whole Fruit sorbet and Godiva, to Canada’s CoolBrands International, reported the Los Angeles Times, citing sources familiar with the deal.

CoolBrands will also take over eight markets in Dreyer’s distribution network in order to satisfy US regulators. Nestlé will also have to dissolve a Dreyer’s joint venture with US confectioner Mars that makes ice cream flavoured with Mars brand confectionery such as Snickers and M&Ms.

The agreement would still need the approval of the commission, which would probably vote on the proposed merger next week.