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 decision to dispose of TSB offers Sabadell a potential defensive play as it seeks to stop BBVA's takeover approach,

Spain's BBVA said on Monday it would move ahead with its hostile takeover bid for Sabadell despite the government effectively blocking it from fully merging with its smaller rival for at least three years.