Spain's BBVA will decide shortly whether to move ahead with its hostile bid for Sabadell after reassessing cost savings in light of conditions imposed by the Spanish government, the bank's manager for Spain said on Wednesday.

The Spanish banking behemoth BBVA is considering its €14 billion hostile takeover of smaller rival Sabadell, following the Spanish government’s imposition of a five-year moratorium on combining the two banks’ operations, which casts doubt on the viability of projected cost savings.

BBVA's acquisition of Sabadell faces a significant delay, as the Spanish government has mandated atleast three-year wait period before the two entities can integrate their operations. This condition is part of the government's approval of BBVA's hostile bid for the smaller rival,