Spain's BBVA is considering whether to go ahead with its bid for Sabadell after conditions imposed by the Spanish government on the deal and will reassess the impact on its estimated cost savings, the bank's country 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.