If you have loaded a common ancestor file, Merging is often able to resolve differences automatically, based on the following rules:
If a line has not been changed in either descendant (it is identical in all three files), it is placed in the merged file.
If a line has been changed in only one of the descendants, the changed line is placed in the merged file. A change could be the addition or removal of an entire line, or an alteration to some part of a line.
If identical changes have been made to a line in both descendants, the changed line is placed in the merged file.
If a line has been changed differently in both descendant files so that it is different in all three files, Merging places no line in the merged file. You must then decide how to resolve the difference--either by using a line from the right or left file, or by editing the merged file by hand.