Banco Bilbao Vizcaya Argentaria said it is prepared to walk away from the deal if conditions imposed by Spain’s competition authority are too stringent.

BBVA Chief Executive Officer Onur Genc said he’s prepared to abandon the pursuit of rival Banco Sabadell if stringent regulatory conditions were to spoil the deal’s appeal.

Spanish bank BBVA has suffered a setback in its €11bn hostile bid for local rival Sabadell as the country’s antitrust regulator announced it would subject the deal to a more rigorous competition review.

By Jesús Aguado MADRID (Reuters) -Spanish bank BBVA is working on concessions aimed at securing regulatory approval for a takeover of rival Sabadell "in a few months", CEO Onur Genc said on Wednesday.