diff --git a/mercurial/merge.py b/mercurial/merge.py
--- a/mercurial/merge.py
+++ b/mercurial/merge.py
@@ -504,7 +504,6 @@ def update(repo, node, branchmerge, forc
         if branchmerge:
             if p1.branch() != p2.branch():
                 fastforward = True
-                branchmerge = False
             else:
                 raise util.Abort(_("there is nothing to merge, just use "
                                    "'hg update' or look at 'hg heads'"))
diff --git a/tests/test-newbranch.out b/tests/test-newbranch.out
--- a/tests/test-newbranch.out
+++ b/tests/test-newbranch.out
@@ -95,9 +95,11 @@ 0 files updated, 0 files merged, 1 files
 1 files updated, 0 files merged, 0 files removed, 0 files unresolved
 (branch merge, don't forget to commit)
 foo
-changeset:   6:9cc105113eeb
+changeset:   6:f0c74f92a385
 branch:      foo
 tag:         tip
+parent:      4:4909a3732169
+parent:      5:c420d2121b71
 user:        test
 date:        Mon Jan 12 13:46:40 1970 +0000
 summary:     Merge ff into foo