LONDON, Aug 23 (Reuters) - European shares rose after the previous session's one-month low on Monday, boosted by merger and acquisition news and on gains in the mining sector on hopes a planned Australian mining tax could be scrapped.
M&A news buoyed the financial sector. Insurer Old Mutual gained 3.1 percent after HSBC said it is in talks to buy up to 70 percent of South Africa's Nedbank, in which Old Mutual owns a controlling stake.
The pan-European FTSEurofirst 300 index of top shares provisionally closed 0.6 percent higher at 1,035.42 points after hitting a one-month closing low in the previous session on concerns about global economic growth.
"We have had a good day on the back of M&A activity, which is surprising considering the concern about the prospects of a double dip recession," said Mike Lenhoff, chief strategist at Brewin Dolphin.
"Corporates are taking the view that the operating environment looks satisfactory and it's time to buy."
Mining stocks were in demand on hopes Australia's inconclusive weekend elections would spell an end to a planned mining tax. Anglo American, Antofagasta and Rio Tinto rose 0.5 to 1.3 percent. (Reporting by Joanne Frearson)