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 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.

BBVA SA‘s €14 billion ($16 billion) bid for rival Banco Sabadell SA suffered a major setback after the Spanish government said the two lenders wouldn’t be allowed to integrate their operations for several years.