Does the Home & Student package still do mail merges on a Mac without the use of Outlook?

You used to be able to create a database in excess of Outlook but a support agent at Microsoft didn't even know what a mail merge was, so trying to explain the creation of the address database was a completely alien concept to him. No wonder Apple rule the computing world.
If someone could answer this for me, it would be really helpful as I need to do mail merges - labels and letters - and if this package doesn't offer the option it's a pointless purchase.

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