Microsoft has made a major concession to UK authorities in a bid to remove the last remaining regulatory obstacle to its huge takeover of Activision Blizzard.

The companies have submitted a new proposal to the UK antitrust watchdog — the only regulator worldwide standing in the way of the $69 billion deal — that would see Activision's (ATVI) cloud streaming rights outside the European Union and three other European countries sold to a rival, Ubisoft Entertainment.

The restructured deal, announced by the UK Competition and Markets Authority Tuesday, follows a decision by the CMA to block the acquisition on its original terms. That move put it at odds with EU regulators, which approved the plan in May. A US federal court also said in July that it would not block the deal from closing.

CMA chief executive Sarah Cardell said the regulator would now consider the new proposal.

"Our goal has not changed — any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice."

Under the restructured deal, Ubisoft — a French video game developer — will be able to license out Activision's content to any cloud gaming provider outside the European Economic Area, including in the United Kingdom. Shares in Ubisoft jumped 7% in Paris Tuesday.

"This will allow gamers to access Activision's games in different ways, including through cloud-based multigame subscription services," Cardell said.

The statutory deadline for a CMA decision is October 18.

Microsoft (MSFT) announced the planned acquisition of Activision early last year. The transaction was valued at $69 billion at the time, making it one of the tech industry's largest deals.

Activision Blizzard is one of the world's biggest video game developers, producing games such as "Candy Crush," "Call of Duty," "World of Warcraft" and "Overwatch."