I'm unable to test it and get the solution by myself right now, and i haven't found the information on MSDN nor at google.
I was questioned if a merge statement that inserts, deletes and updates records in a given table need to be encapsulated in a transaction (if a failure occurs after the inserts were done, during the updates for example), or if any of the operations fails the whole merge fails as well.
Maybe it would not harm if we included an transaction, but for the sake of curiosity, we wish to know more about the merge internals.