European stocks had their biggest two-day gain in two weeks as companies from Bayer AG to PSA Peugeot Citroen reported better-than-estimated earnings and deals activity intensified.
Bayer and Peugeot rose more than 3.9 percent. GlaxoSmithKline Plc climbed 3.5 percent after the U.K.’s biggest drugmaker posted second-quarter profit that declined less than analysts had estimated. Barclays Plc added 1.8 percent and Numericable-SFR SAS added 3 percent as profit rose. Italcementi SpA surged 49 percent as HeidelbergCement AG said it will buy it. The German company lost 6.3 percent.
The Stoxx Europe 600 Index gained 1 percent to 394.01 at the close of trading in London. It rose for the first time in six days on Tuesday amid earnings that topped projections and takeover activity. Dealmaking is on track for the busiest third quarter on record, with volume set to surpass $1 trillion.
Quintain Estates & Development Plc jumped 22 percent after a Lone Star Funds affiliate agreed to purchase it. Solvay SA slipped 3 percent after agreeing to acquire Cytec Industries Inc. for $5.5 billion.