PARIS, Oct 23 (Reuters) - The European Space Agency said

on Thursday it would study a newly announced satellite

combination between three aerospace groups to ensure that it

preserved a competitive landscape.

Director General Josef Aschbacher told a news conference

that the ESA supported a strong industry and "mergers happen",

but added that the 23-nation agency would take account of the

impact of the deal when deciding future procurements.

"This is good because it may make industry stronger and

therefore more competitive on the world market," he said when

asked about the preliminary deal announced on Thursday.

"It will change the landscape in terms of competition and we

will take this into account in our industrial policy and the

procurements we make," he added.

Airbus and a pair of ventures owned by Thales and Leonardo

currently compete with Germany's OHB, Spain's Indra and startups

like Finland's ICEYE but would control the lion's share of the

European satellite market when combined.

While the European Commission will review the deal on

anti-trust grounds, the ESA's role is to balance the strength of

the industry with the interest of taxpayers through

competitions.

Aschbacher said the ESA would work to ensure Europe

continues to have a "very competitive industry...(and) that the

European space sector is strengthened through this move".