Um, sorry, but no, we don't know which one you mean; they are two completely different things, though as it happens, the answer for both things is much the same.
Merging squadrons: No. It would seem to be somewhat redundant anyway, and there would be complications: for example, if both squadrons supported different minor factions, how would they decide which faction the new merged squadron would support? Squadrons are ultimately made up of members; if the entire membership of one squadron wishes to join another squadron, then they're free to do so.
Merging minor factions: No. At least, it's never happened before, so on the assumption that something that never happens must be impossible, then no, it's impossible. Since players have no direct control over the behaviour of minor factions, there's certainly nothing a player or player group can do in this regard. FD can, of course, choose to edit, delete and change the assets of minor factions, at will. But they've never shown any inclination of doing anything resembling a "faction merger".
Putting some kind of "Minor faction merger" mechanism in place would be a good way for FD to start to cut down on the proliferating number of factions in the game. But so far, FD have not seen the "proliferating number of factions in the game" as a problem that needs solving.