*

STOXX 600 flat, energy shares lead losses

*

Britvic ( BTVCF ) gains on deals with Carlsberg

*

Delivery Hero drops after it flags potential antitrust

fine

(Updated at 1600 GMT)

By Shubham Batra and Shristi Achar A

July 8 (Reuters) -

European shares were muted on Monday as investors mulled

chances of a

hung parliament

in France after the left alliance's unexpected advance in

the election, while weak energy shares were a drag.

The pan-European STOXX 600 index ended flat at

516.43 points. The oil and gas sector was the biggest

drag on the benchmark index, down 1.1%, as crude prices took a

hit.

French stocks gave up early gains to shed 0.6% on

the prospect of taxing negotiations starting Monday to form a

government, after a surprise left-wing surge blocked the far

right's quest to win the snap election called by President

Emmanuel Macron.

"A pact of coordination between the centre and the left was

formed to reduce the chances of the latter. Arguably, this pact

has been successful, but the outcome looks like a classic case

of unintended consequences," said Jamie Ross, portfolio manager,

European Equities at Janus Henderson Investors.

"If political wrangling reaches complete deadlock, some sort

of a technocratic government would be the likely outcome. This

would be a benign outcome for markets."

Shares of BNP Paribas, France's largest bank, lost

1.7% while SocGen fell 1.2%.

Data from Germany showed exports fell more than expected in

May due to weak demand from China, the U.S and European

countries. Market attention will shift to U.S. and German

inflation data due later this week that will shape the narrative

for the path of future interest rate cuts.

Friday's U.S. jobs report bolstered the case for a September

rate cut from the Federal Reserve, lifting chances of an easing

to 77%.

Among individual movers, Grifols jumped 9.7% after

the Grifols family and Canadian fund Brookfield agreed to launch

a joint takeover bid for the Spanish drugmaker with plans to

delist it.

UK's Britvic ( BTVCF ) climbed 4.4% as the soft drinks maker

said it has agreed to be taken over by Carlsberg for

3.3 billion pounds ($4.23 billion) after the Danish brewer

sweetened its bid.

Shares of Carlsberg also rose 3.3%.

Delivery Hero dropped 7.1% to the bottom of the

STOXX 600 after it said it may face a fine exceeding 400 million

euros from Brussels due to antitrust violations.

ASML shares briefly crossed the 1,000 euro

($1,084.30) mark for the first time following positive research

notes on top customer TSMC ahead of both companies'

earnings reports. It ended 0.5% higher.