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It is a great option, which works usually as expected.
However, in certain formats like xliff or xml a file structure damage may appear, so merging should be done only with checking the target file for usability.
In formats like Word merging is usually unproblematic, provided no placeholder tags like field or picture are present in the segments. If such segments are merged, no target file can be saved at all. As the merging action cannot be undone, the user is trapped with translated, but unusable file and must start from scratch.
