Banco Sabadell SA’s sale of its UK unit will further complicate the unsolicited takeover approach by BBVA SA for its smaller Spanish rival, analysts said.

The potential sale of Sabadell's British unit TSB to Santander could further complicate BBVA's hostile takeover bid for the lender, Sabadell CEO Cesar Gonzalez-Bueno told analysts 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.