Spain’s Government Braces for Legal Clash on BBVA’s Sabadell Bid

The Spanish government is preparing for a court battle over its opposition to BBVA SA’s takeover bid for smaller lender Banco Sabadell SA, according to people familiar with the matter.

The government is likely to discuss its decision on the bid at a cabinet meeting on June 24, the people said, asking not to be named as the deliberations aren’t public. Discussions are still ongoing within the government, but the expectation is that there will be additional conditions and hurdles set on the deal, the people said.