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.

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,