European shares fall on poor China data, SABMiller up

(Adds dropped word 'up' in final paragraph)

LONDON, Sept 15 (Reuters) - European equities fell in early trading on Monday after disappointing macroeconomic data from China raised concerns about the pace of economic growth in the world's second-biggest economy.

Weekend data showed China's factory output grew at the weakest pace in nearly six years in August while growth in other key sectors also cooled, increasing fears the world's second-largest economy may be at risk of a sharp slowdown unless Beijing takes fresh stimulus measures.

The STOXX Europe 600 Oil and Gas index dropped 1.2 percent, the biggest sectoral faller in Europe, while the basic resources index fell 0.4 percent, tracking two-year low crude oil prices and three-month low copper prices.

At 0706 GMT, the FTSEurofirst 300 index of top shares was down 0.4 percent at 1,377.38 points.

On the mergers and acquisitions front, Dutch brewer Heineken said on Sunday it was approached by larger rival SABMiller (LSE: SAB.L - news) about a potential takeover but that its controlling shareholder intended to keep the company independent.

Heineken (Other OTC: HEINY - news) and SABMiller shares were up 3.6 percent and 4.8 percent respectively.

(Reporting by Atul Prakash, editing by Tricia Wright)