Spain Antitrust Agency Is Said to Clear BBVA’s Sabadell Bid (1)

Spain’s antitrust agency approved with strict conditions BBVA SA’s €13 billion ($14.8 billion) bid to buy smaller rival Banco Sabadell SA, setting the stage for the government to have a final say in the year-long takeover fight, according to a person familiar with the matter.

The approval is set to be officially announced as early as today, the person said, asking not to be identified as the matter is not public. Terms are expected to be feasible for BBVA, who had previously said it could walk away if the conditions were too onerous.

A Banco Sabadell SA bank branch in Barcelona.

Photographer: Angel Garcia/Bloomberg

BBVA made its unsolicited ...