Paramount is set to leave its United International Pictures (UIP) distribution joint venture with Universal. The move is part of efforts to secure European Union approval for its proposed $111 billion merger with Warner Bros. Discovery.

The European Commission confirmed on Wednesday that Paramount Skydance submitted a filing promising to exit the venture. The move follows a request from the EU’s antitrust watchdog last week.

The filing also extends the Commission’s provisional deadline for a decision. Regulators will now rule on the deal by July 22 instead of July 7.

UIP’s Role in Europe

UIP was founded in 1981 and is based in London. Although its operations have reduced over the years, it still distributes films in Denmark, Greece, Croatia, Hungary, Norway, Poland and Sweden.

Confirming the development, Paramount said: “We can confirm that today we have submitted a remedy to the European Commission.”

The company added: “We have been working constructively with the Commission for 8 months and are confident that this remedy directly and comprehensively addresses any concerns expressed in the European Commission’s preliminary assessment and supports the path for timely clearance.”

“We look forward to continuing to work constructively with the European Commission and all remaining regulatory agencies as they advance their review process for this pro-competitive transaction.”

Merger Faces Final Reviews

The merger agreement was signed in February after a lengthy battle with Netflix. It would combine Paramount’s businesses, including CBS, CBS News, Paramount Pictures and Paramount+, with Warner Bros. Discovery’s HBO, HBO Max, Warner Bros. Pictures, CNN, TNT, TBS and HGTV.

The EU review is one of the final major hurdles before the deal can close.

The merger is also under review in the United Kingdom. Culture Secretary Lisa Nandy has raised concerns about “a sufficient plurality” of people who control the U.K. media.

If approved, the deal would place broadcaster 5 and TNT Sports under the same ownership. Paramount+ and HBO Max would also be part of the combined company.

Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’imad Holding Company and the Qatar Investment Authority are investing a combined $24 billion in the merger. Their investments have not raised concerns with regulators in the EU or the U.K.