Investing.com -- British stocks closed mostly flat on Tuesday, erasing earlier gains, amid a quiet corporate earnings day but with major deal news.

The blue-chip index FTSE 100 closed up around 0.03%. The British pound gained 0.5% against the dollar to 1.3367. 

Meanwhile, DAX index in Germany and the CAC 40 in France both fell 0.4%. 

DoorDash agrees on deal for Deliveroo (OTC:DROOF)

DoorDash Inc (NASDAQ:DASH) announced on Tuesday that it will acquire U.K.-based food delivery firm Deliveroo Holdings PLC (LON:ROO) in a transaction valued at £2.9 billion.

The deal comes after an offer made last month, in which DoorDash proposed 180 pence per share for Deliveroo.

Deliveroo shares gained about 1.9% on Tuesday following the news. 

ABF confirms deal talks with Endless 

Associated British Foods PLC (LON:ABF) said on Tuesday it is in talks with private equity firm Endless LLP, the owner of British bakery Hovis, regarding a possible deal involving its Allied Bakeries division.

This follows media reports over the weekend about the talks.

ABF shares fell about 1.5%. 

Alpha turns down Corpay’s offer

U.K.-based financial services firm Alpha FX Group PLC (LON:ALPH) said on Tuesday that it has turned down a cash-only acquisition offer from U.S. business payments company Corpay Inc (NYSE:CPAY).

Shell (LON:SHEL) reportedly weighs BP (NYSE:BP) takeover 

Over the weekend, Bloomberg reported that oil giant Shell PLC (AS:SHEL) has engaged advisers to explore a potential acquisition of competitor BP PLC (LON:BP).

However, any move forward is expected to depend on a further decline in BP’s share price and developments in the oil market.

Bloomberg noted that no final decision is imminent and the outcome may hinge on BP’s near-term stock performance.

BP’s London-listed shares closed up 1.4% in Tuesday trading. 

Argentex shares crash over 90% after trading resumes 

Argentex Group PLC (LON:AGFX), a U.K.-based currency risk manager, resumed trading on London’s AIM market on Tuesday after being suspended since April 22 due to financial strain from a sharp decline in the U.S. dollar.

Upon reopening, the company’s shares plummeted over 93%, closing at just 2.83 pence.

Alpha gains after rejecting Corpay’s offer

Shares of British financial services firm Alpha FX Group PLC (LON:ALPH) rose 3.7% after it rejected an unsolicited all-cash acquisition proposal from U.S.-based business payments company Corpay Inc (NYSE:CPAY).

In other company news, Tesla Inc’s (NASDAQ:TSLA) new car sales in the United Kingdom (TADAWUL:4280) fell 62% year-on-year in April, reaching their lowest level in more than two years, according to data published by New AutoMotive on Tuesday.

Peabody may cancel Anglo American (JO:AGLJ) assets deal

Anglo American PLC (LON:AAL) shares dropped 3.1% after Peabody Energy Corp (NYSE:BTU) indicated it may cancel an agreement to acquire the miner’s Australian coal assets.

U.K. services sector contracts in April

Britain’s services sector, a key driver of the national economy, shrank in April, reflecting growing pressure on the industry.

The S&P Global UK Services PMI, which gauges the performance of the services sector, dropped to 49.0 in April from 52.5 in March, signaling a contraction.