Maybe you mean R600?
And I doubt any merging will happen, large companies very rarely merge. They may appear to merge, but either AMD will own ATI or ATI will own AMD, on paper. ATI doesn't seem to be doing to well against Nvidia as of now though, at least that's just how it appears. After the G80's and Conroe are released, ATI and AMD are going to be pretty toast ...
You know Intel will try to buy Nvidia if AMD buys ATI.