BBVA's hostile takeover bid for smaller rival Sabadell will require a phase 2 review, Spain's anti-trust watchdog CNMC said in a statement on Tuesday. A more in-depth review is expected to delay the outcome well into 2025 and also signals potentially higher remedies for BBVA,

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.

Spain’s competition watchdog is likely to announce it needs more time for a final decision on BBVA’s proposed takeover of Banco Sabadell, which would extend the current takeover battle by several months.

By Jesús Aguado MADRID (Reuters) -Spanish bank BBVA's hostile takeover bid for smaller rival Sabadell, aimed at creating a bank with assets over 1 trillion euros ($1.06 trillion), must undergo a longer anti-trust review,