FAIR PLAY: Sinclair, Rite Aid Show No Merger Is Invincible

Last week was rough for mergers. Sinclair Broadcast Group Inc.’s purchase of Tribune Media Co. imploded, and Rite Aid Corp. was forced to bow to shareholders who didn’t like selling the company at a discount to grocer Albertsons Cos. Inc.

The two deals were scrapped within hours of one another, putting on display a variety of ways mergers can fall apart. The moral of their stories is this: No deal, no matter how inevitable it seems, is invincible.

Sinclair’s aggressive negotiations with government enforcers managed to topple a deal that looked like a slam dunk when it was announced last ...