In individual stocks news, shares of France's telecoms sector were in focus after France's Bouygues rejected a10-billion-euro ($11.2 billion) offer for its telecom unit from Altice, Reuters reported. Bouygyes fell near the bottom of indexes, closing around 9.3 percent lower, while Altice stock fell by 4.8 percent.
Elsewhere, Dutch-based supermarkets operator Ahold said it was going to buy Belgian rival Delhaize. Shares in Ahold, which will take a 61 percent stake in the new company pared earlier gains, closing 3.7 percent lower. Delhaize Group shares ended over 7.6 percent lower.
Read MoreAhold and Delhaize announce intention to merge
Swiss bank Julius Baer shares rose, closing at the top of benchmarks at 3.3 percent, on hopes that it was nearing an agreement with U.S. regulators. Late on Tuesday, it agreed to take a $350-million charge in the first half over an investigation into allegations it helped clients evade taxes.
Meanwhile, shares in AIM-listed Quindell were temporarily suspended after the U.K.'s Financial Conduct Authority said it had begun an investigation into the company.
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