I don't think you mean 'merge' - that's a specific operation. I think you mean 'squash', which combines multiple commits into one. 'Fixup' is also something similar.
Git allows you to edit history in any way you like. The hardest is probably splitting a commit into multiple smaller ones. It requires you to edit a commit by resetting the HEAD and making multiple smaller commits before continuing with the rebase. Though it sounds complicated, it becomes easy enough after you try it a couple of times. You should check out git-rebase.io - a site dedicated to editing git history. You can learn to craft proper commits of high quality.
Once you get familiar with rebasing, you could try out stacked git. Interactive rebasing looks weak in comparison to what stgit can do. Stgit allows you to edit history like rebase. But that's the least of it. It allows you to create proper commits from the start, rather than by editing at the end. In some ways, stgit gives you multiple staging areas - giving you incredible flexibility.