Fujiwhara Effect
If the storms are nearly the same size and/or strength, they will more likely orbit each other around a central point.
Sort of like two wheels turning in the same direction, they will bounce off each other if they touch.
Of course, since we are not dealing with solid objects, eddies will form in the areas where the two interact,
and no "bounce" occurs.
If one storm is much stronger and/or larger, they do sometimes merge, with the smaller/weaker circulation being
drawn in to the larger.
Astronomers have seen this happen numerous times on Jupiter, where the Great Red Spot eats smaller red spots.
(Mmmm.)
The interactions between 2 tropical lows is called the "Fujiwhara Effect".
Very interesting to read about. Try Googling it.
And Here is a link to a Youtube video of satellite animation of two typhoons interacting...
http://www.youtube.com/watch?v=5EP65hv9hlw&feature=related
You can get more examples, of both Mergers and Orbits,
if you go to Youtube and Search on "Fujiwhara".
Neat Topic. Glad you asked.
-T