The easiest way to do this is using LINQ to XML. You can use either Union or Concat depending on your needs.
var xml1 = XDocument.Load("file1.xml");
var xml2 = XDocument.Load("file2.xml");
//Combine and remove duplicates
var combinedUnique = xml1.Descendants("AllNodes")
.Union(xml2.Descendants("AllNodes"));
//Combine and keep duplicates
var combinedWithDups = xml1.Descendants("AllNodes")
.Concat(xml2.Descendants("AllNodes"));