The Spanish government said it would approve BBVA’s hostile takeover of Banco de Sabadell on condition that the banks temporarily be managed independently and kept legally separate.

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.

Both banks must keep their operations and assets independent for a minimum of three years The Spanish government has said it would approve Banco Bilbao Vizcaya Argentaria’s (BBVA’s) hostile takeover of Banco de Sabadell,