LONDON (TheDeal) -- European stock markets rose on Monday, encouraged by recent progress on a solution to the Greek debt crisis and a rash of corporate activity, including news of a potential transaction between fertilizer makers CF Industries Holdings (CF) - Get Report and OCI (OCINY) .
As Greek banks prepared to reopen, German Chancellor Angela Merkel appeared to soften her stance on Greek debt concessions, saying in a weekend TV interview she was open to discussing lower rates and an extension of maturities.
Also in Germany, data showed producer prices unexpectedly fell by 0.1% in June, and were down 1.4% from a year earlier -- led by falling energy prices. Expectations had pointed to unchanged prices from May and a 1.3% annual decline.
In London, the FTSE 100 was up 0.49% at 6,808.10. In Frankfurt, the DAX rose 1.02% to 11,792.2, and in Paris, the CAC 40 gained 1.04% to 5,177.88.
Aveva (AVEVF) rose almost 30% in London after the British engineering software company struck deal worth £1.3 billion ($2 billion) which will unite the company with a Schneider Electric (SBGSF) division and hand the French parent a near-54% stake in the enlarged U.K. group.
London-listed online gaming company Bwin.party Digital Entertainment was up more than 1% after a report that GVC Holdings (GMVHF) was contemplating making another bid after Bwin.party on Friday accepted a lower offer from 888 Holdings (EIHDF) .
Fiat Chrysler Automobiles (FCAU) - Get Report rose in Milan after Reuters reported that it is considering whether to sell auto parts maker Magneti Marelli after receiving interest from potential buyers. Reuters cited sources familiar with the matter, saying at least two U.S. private equity firms are interested in joint bids with industry players and that one buyout fund had already made an offer worth $2.7 billion.
A U.S. spokesman for Fiat told Reuters the business wasn't for sale.
Dutch fertilizer and industrial chemical company OCI (OCINY) was up more than 14% in Amsterdam after Deerfield, Ill.-based CF Industries (CF) - Get Report said it was in talks about a "combination" with some of OCI's businesses.
Also in Amsterdam, artificial turf maker Royal Ten Cate (KNKCF) rose well over 20% after Gilde Buy Out Partners, together with Parcom and ABN Amro Participaties, agreed to take the company private with a bid worth close to $730 million.
In Paris, French engineering company Alstom (ALSMY) rose after beating estimates with a 3% first-quarter "organic" sales rise. It confirmed its medium-term sales target of 5%. It also said General Electric's (GE) - Get Reporttakeover of most of its energy equipment business was on track.
Power stations operator Energy Developments (EGDCY) closed up 2.5% in Sydney after Duet agreed to make an offer that values the business at A$1.9 billion ($1.4 billion), including debt.
In Hong Kong, the Hang Seng edged down 0.04% to close at 25,404.81. In mainland China, the Shanghai Composite closed up 0.88% at 3,992.11.
Tokyo markets were closed for a holiday.