+ hg init
+ echo nothing
+ hg add a
+ hg commit -t ancestor -u test -d '0 0'
+ echo something
+ hg commit -t branch1 -u test -d '0 0'
+ hg co 0
+ echo 'something else'
+ hg commit -t branch2 -u test -d '0 0'
+ export HGMERGE=merge
+ HGMERGE=merge
+ hg -d up -m 1
merge: warning: conflicts during merge
resolving manifests
 ancestor 1c6e5a129854 local 35fedfab3325 remote a58017859bdc
 a versions differ, resolve
working dir created .out, keeping
merging a
resolving a
file a: other d7250518cb1b ancestor 68ba9db7a9e4
merging a failed!
+ hg id
32e80765d7fe+75234512624c+ tip
+ grep -Ev '>>>|<<<' a
something else
=======
something
+ hg status
C a
? .out