Please take a look at the formatting of this MERGE statement:

I see three issues her, two major, one minor:

• (Major) The DELETE WHERE part of the WHEN MATCHED THEN UPDATE part is completely wrong!
  It must be inline with the UPDATE statement.
• (Major) The WHERE clause of the WHEN NOT MATCHED THEN INSERT part must be inline with the INSERT statement.
• (Minor) The field and value list of the Insert part could be one item per line.