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UserA has company/folderA/subfolderA/fileA
UserB has company/folderB/subfolderB/fileB

If UserB leaves company and if we want to transfer ownership to UserA will it merge properly at the folder levels?

Does company created by UserB and UserA merge properly and show as a common folder post merge

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The simple answer to your questions is Yes, it's possible. The command below can be more complex if you are consolidating disparate folder IDs for the same company across both those users and want to consolidate. In the example you described it was difficult to understand if the company folder for UserA had the same ID as the company folder for UserB. In Drive, two users can have exactly the same folder names but be unique IDs.

I would leverage GAMADV-XTD and selectively transfer ownership of the company folder and all of the sub-folders/files owned by UserB by issuing the following command.

gam user UserB transfer drive UserA select 0B9b03A7wNoNNfmhYVXQzSWk5cHhLVl9kcU

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