Yes, they more or less merged. The differences were/are irrelevant here in the states.
I tend to agree that they likely merged. It's the only way to explain the ability of Guiseppe Masseria to dominate the Corleonesi Morello clan.
Also Masseria was assassinated in Coney Island, a former Camorra stronghold. Is it possible that his former Camorristi-turned-Cosa-Nostra-mafiosi collaborated in the plot against Joe the Boss?