I agree. Text merge on the blueprint files is a no-go. That’s why (I’ve read on the forum) you should do the merge in git (keep it unresolved), start up UE 4.9 and do you blueprint diff in there. As I understand, there’s both a Diff and Merge tool built in to the Git UE4 beta plugin. I’ve used the diff tool before, and it actually work quite nice. You have a visual presentation of the differences between blueprints. If that is possible, it should be possible to merge them, and create a new binary version.
I just can’t get it to work… Maybe after upgrading Git or upgrading to UE 4.9.1.