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You know that the word 'merge' is both transitive and intransitive. Then in the following sentence, which of the two sounds more natural and common to native speakers? And why?
Though (merging/merged), the two companies did not have any advantages over their competitors.
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Merged and merging mean something different.
In your sentence they are used as participles- one present participle the other Perfect participle.
Merging would mean in your sentence that they are currently in the process of a merger. Merged (what i believe you meant to say) means that they had already merged and become one.
