The Dutch competition authority (NMa) is to investigate plans by major Dutch flower auctions Aalsmeer and FloraHolland to merge into the world's largest flower exchange, Dutch media reported Thursday.

The competition watchdog will try to find out whether the new joint venture, which with an annual turnover of almost four billion euros would be by far the world's biggest flower auction, could pose a threat to competition on the flower market.

FloraHolland and Aalsmeer are the two top flower auctions in the Netherlands, which holds 60 percent share of the world flower market. The two cooperatives control more than 90 percent of the Dutch market for auctions and mediation services for decorative flowers and plants.

The Dutch regulators will investigate whether local or international markets outside the auction channels would be able to offer a satisfactory alternative to the services offered by the new auction.

Dutch flower auctions are facing increasing competition as globalization has led to easier contacts between buyers and sellers as well as lower costs. The fiercest competition comes from the Far East.

The two rival auctions announced their merger plan in October last year in a move to keep their leading market position.

Source: Xinhua