I've had a bit of a play with this and come up with two possible solutions, both involving overlying shapes on cells
(1)
I don't know how/if it's possible to detect drag & drop operation on cells - particularly given the default action is to select the 'dragged over' cells.
I have an alternate idea using transparent shapes over each of the 'source' cells (i.e. a5:a10). By overlaying shapes over these cells, these may be dragged and dropped on to your merged cells. Then you would just create a class for these shapes, hopefully they support a 'on move' or on click event, which would then allow you to use some math to determine where they've been dragged to, and where they came from. YOu could then return the shape back to its original position, but update the 'row 2' cell value to reflect the 'selected' data item.
This is the formatting I used.
ActiveSheet.Shapes.AddShape(msoShapeRectangle, 0#, 102#, 48#, 12.75).Select
Selection.ShapeRange.Fill.Visible = msoTrue
Selection.ShapeRange.Fill.Solid
Selection.ShapeRange.Fill.ForeColor.RGB = RGB(0, 0, 0)
Selection.ShapeRange.Fill.Transparency = 1#
Selection.ShapeRange.Line.Weight = 0.75
Selection.ShapeRange.Line.Transparency = 0#
Selection.ShapeRange.Line.Visible = msoTrue
Selection.ShapeRange.Line.ForeColor.RGB = RGB(0, 0, 0)
Selection.ShapeRange.Line.BackColor.RGB = RGB(255, 255, 255)
Note that using "No Fill" causes the click action to 'fall through' the shape to the underlying cell, hence the use of transparency.
(2)
Using the same shapes, you can use the 'OnAction' property of each shape to launch a macro when it is clicked. Clicked, not dragged. If the drag destination is always going to be the same, would clicking be just as good? If so, you may use the OnAction property, and pass a parameter which specifies which shape has been clicked.
Sub setShapeActions()
Dim x As Shape
For Each x In ActiveSheet.Shapes
x.OnAction = "'" & "Module1.doDrag """ & "Cell A2" & """'"
Next x
End Sub
Sub doDrag(xyz)
MsgBox xyz & " was clicked"
End Sub
Clearly I haven't devised a whole solution, but it hopefully may lead you down a fruitful path of inquiry.
Rick