diff -r 2519994d25ca -r 527a247f114f mercurial/merge.py
--- a/mercurial/merge.py	Sun Mar 19 11:54:15 2017 -0700
+++ b/mercurial/merge.py	Sun Mar 19 11:42:17 2017 -0700
@@ -858,7 +858,7 @@
                 pass # we'll deal with it on m2 side
             elif f in movewithdir: # directory rename, move local
                 f2 = movewithdir[f]
-                if matcher(f2) and f2 in m2:
+                if f2 in m2:
                     actions[f2] = ('m', (f, f2, None, True, pa.node()),
                                    "remote directory rename, both created")
                 else:
@@ -887,7 +887,7 @@
                 pass # we'll deal with it on m1 side
             elif f in movewithdir:
                 f2 = movewithdir[f]
-                if matcher(f2) and f2 in m1:
+                if f2 in m1:
                     actions[f2] = ('m', (f2, f, None, False, pa.node()),
                                    "local directory rename, both created")
                 else:
@@ -895,7 +895,7 @@
                                    "local directory rename - get from " + f)
             elif f in copy:
                 f2 = copy[f]
-                if matcher(f2) and f2 in m2:
+                if f2 in m2:
                     actions[f] = ('m', (f2, f, f2, False, pa.node()),
                                   "remote copied from " + f2)
                 else:
@@ -927,7 +927,7 @@
                         # new file added in a directory that was moved
                         df = dirmove[d] + f[len(d):]
                         break
-                if matcher(df) and df in m1:
+                if df is not None and df in m1:
                     actions[df] = ('m', (df, f, f, False, pa.node()),
                             "local directory rename - respect move from " + f)
                 elif acceptremote: