If the dependencies of the two different versions of RPM are same, would yum update remove and install dependencies too?
Simple answer is
no. The YUM updater is smart enough to determine dependencies in the installed package manifest. For example:
Say you have two packages:
And you want to upgrade
Package_2.0.rpm but the dependency is still
Dependent_package_1.0.rpm, YUM will do the following:
yum update Package_1.0
Would you like to install Package_2.0?
It's smart enough to know that
Dependent_package_1.0 satisfies the dependencies for both