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.

Spain’s decision to delay a possible merger of BBVA SA with Banco Sabadell SA is leaving analysts divided over whether the deal will still go ahead.

The Spanish government said it would clear Banco Bilbao Vizcaya Argentaria’s hostile bid for smaller peer Banco de Sabadell on the condition that the banks don’t legally merge for up to five years.Spain’s Ministry of Economy,