The European Commission has decided to initiate a close examination in the planned creation of Astrium, the company into which German Daimler Chrysler Aerospace (Dasa) and Matra Marconi Space want to merge.

According to a statement by the Brussels-based competition authority, the merged group might gain a dominating position in the area of observation and science satellites, space infrastucture and commercial rockets in Germany. It added that, after preliminary investigations, the commission has strong objections that the merger could lead to the creation of a dominating force in some European markets.

Dasa and Aerospatiale Matra had announced their merger in mid October which would create the world’s third largest company in the aviation and space industry.