Memory block merging *means* splitting so we are talking about the same thing. By merge we mean if you code two independent memories depending on their properties and the capabilities of the memory blocks Quartus can sometimes merge them into a single memory block. So I don't mean merging as in ganging memories together but rather merging memories in the design to consume fewer RAM blocks.
My memory isn't good enough to remember what that RAM block type is capable but merging typically requires dual port to be supported so that you can make a single RAM block behave as independent blocks.