BBVA hires JP Morgan to advise on potential acquisition of Sabadell, El Confidencial says

FILE PHOTO: The logo for Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. Picture taken October 19, 2017. REUTERS/Chris Helgren

MADRID (Reuters) - Spain's BBVA BBVA.MC has hired JP Morgan to advise it on the potential acquisition of Banco Sabadell SABE.MC, Spanish website El Confidencial said on Monday, citing unnamed sources.

Both BBVA and Sabadell declined to comment.

A source had told Reuters in September that Spanish lender Sabadell had hired Goldman Sachs in July to explore strategic options, including a potential M&A deal.

BBVA agreed on Monday to sell its U.S. business to PNC Financial Services Group Inc PNC.N for $11.6 billion in cash, which prompted speculation BBVA could use the cash to buy up a rival bank in its domestic market.

In September, two sources told Reuters that Sabadell had held informal talks about a possible tie-up, including with BBVA.

Reporting by Jesús Aguado; editing by Ingrid Melander