Source: Financial Times, 20th October 2010

It may be easier for a camel to pass through the eye of a needle than for BHP Billiton chief executive Marius Kloppers to pull off a big deal. After his failed takeover of Rio Tinto and a stillborn iron ore joint venture with Rio in the Pilbara, his planned $39bn takeover of PotashCorp has run into a regulatory challenge. This time, Saskatchewan, the Canadian province where Potash is based, fears the potential loss of C$3bn of royalties over the next decade if the deal proceeds. BHP would be able to use the losses incurred in the development cost of Jensen Lake, its own potash project in the province, to reduce the taxes on PotashCorp's earnings.