Europe's leading exchanges closed with good gains, helped by Volkswagen's rally on news that Porsche raised its stake in the carmaker to a majority.
Luxury sportscar maker said it now holds more than 50% in fellow German auto manufacturer and plans to up its stake to 75% later this year.
Stuttgart-based Porsche now owns 50.76% of the shares in the world's third-largest carmaker, up from 42% previously.
As a result, Porsche is obliged to make a takeover offer for truck maker , in which VW is the dominant shareholder. The group said it has no strategic interest in the Swedish company and will only offer the minimum price for the shares that is prescribed by law.
Elsewhere in the sector, is to halt production at its Japanese plants for 11 days in February and March to reduce its stock of unsold vehicles. The Japanese car firm will stop output for six days in February and five days in March, according to reports.
Toyota, which saw sales in the US drop 37% in December, said the suspension will affect its 12 directly operated plants, including four car assembly plants and other factories that make engines, transmissions and other parts.
In the pharmaceuticals sector, was one of the main risers in Paris, while rivals and were also up.
Across the markets, the German DAX gained 42 points to 5,026 the French CAC closed up 36 points at 3,396, while the Swiss market rose 43 points to 5,799.
was down after Merrill Lynch slashed its recommendation on the German retailer to "underperform" from "buy".
Shares in closed lower after its largest shareholder, German billionaire Adolf Merckle, committed suicide.
The family of the 74-year old said in a statement that the "passionate family entrepreneur" was broken by the "uncertainties of the last few weeks and his powerlessness to act."
In economic news, euro zone inflation has dropped to its lowest level in more than two years, raising expectations that the European Central Bank will continue to cut interest rates.
Inflation is expected to be 1.6% in December compared with 2.1% in November, according to a flash estimate issued by European Union statistics office Eurostat, well below the ECB's target rate of just under 2%.
