The owner of a Spanish bank is at the center of speculation about a potential merger

Banco Bilbao Vizcaya Argentaria SA has told Banco Sabadell SA that it’s interested in exploring a merger, in what could be one of the largest European banking mergers in years.

BBVA, which owns a stake in Britain’s Atom Bank, is said to be working with advisers at JP Morgan on a potential offer for Sabadell, its smaller rival, Sky News learns.