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The 87th and the 129th have been broken down to regiments right from the start of the campaign. I now want to merge the regimental units to form two full inf. divisions by rule 7.5.3 (index says p.102, but it's on p.107 as I found out - maybe worth to be corrected) in conjunction with the various addenda to this rule.
In turn 7 I have the 1/129th + 2/129th + 3/129th with full mps each in one friendly controlled hex, but clicking on "merge" simply informs me that there are no units capable on being merged. What have I missed?

Check that they have the same HQs. (My usual mistake.)

I've checked this: The 129th has the XXXXII. as its HQ and I haven't changed it.

Hi,

Click on the unit "build-up/breakdown" icon at the top of the map. It's a rectangle.

Charlie0311 is right. Much appreciated, thank you.

Merging is disbanding one unit and transferring their stuff to a unit in the same hex.
BTW use "b" key - usually faster than clicking around with your mouse.