Merge clips option grayed out

[XilburQost]

Per the attachment, I want to merge the two clips in Video 2 and preserve the cross-dissolve between them. Both are selected, but when I right-click on the clips, Merge Clips... is grayed out.

I've researched this, but haven't been able to find an workable solution. (The reason for my wanting to merge the clips is a little more complicated, but I can explain if relevant.) Any suggestions? Thanks.

Adobe Premiere Pro v15.2.0 (Build 35)
Windows 10 Home 21H1 (OS Build 19041.1110)

[Ann Bens · Accepted solution]

Try nesting instead.

https://helpx.adobe.com/premiere-pro/using/edit-sequences-loaded-source-monitor.html

Merging is for video with audio.

https://helpx.adobe.com/premiere-pro/using/synchronizing-audio-video-merge-clips.html

[XilburQost]

Thank you Ann Bens. Once again time for me to venture outside my comfort zone. Much appreciated.