I try to use VanillaJS to handle this.

const originalAddresses = [{
    label: 'home',
    address: {
        city: 'London',
        zipCode: '12345'
    }
}, {
    label: 'work',
    address: {
        city: 'New York',
        zipCode: '54321'
    }
}];

const updatedAddresses = [{
    label: 'home',
    address: {
        city: 'London (Central)',
        country: 'UK'
    }
}, {
    label: 'spain',
    address: {
        city: 'Madrid',
        zipCode: '55555'
    }
}];


const groupBy = (array, property) => {
    return array.reduce((acc, cur) => {
            let key = cur[property]
            if (!acc[key]) {
                acc[key] = []
            }
            acc[key].push(cur)

            return acc
        }
        , {})
}

const groupByLabel = groupBy([...originalAddresses, ...updatedAddresses], 'label')

const result  = Object.keys(groupByLabel).map((key) => {
        return {
            label: groupByLabel[key][0].label,
            address: groupByLabel[key].reduce((acc, cur) => {
                    return Object.assign(acc, cur.address)
                }
                , {})
        }
    }
)
console.log(result)