Splitting code between files and then merging

I have been playing around with various merge situations and things
don't seem to be working quite as I expected.

If I have a repository with a file such as:

### file abc ###
void
foo(){
  int x;
  func(x);
}

void
moo(){
  int y;
  func(y);
}

And then clone that repo and in my clone I edit things so that I have two files:

### file abc ###
void
foo(){
  int x;
  func(x);
}

### file bcd ###
void
moo(){
  int y;
  func(y);
}

I commit this.

Then I do a git blame -C -C6 bcd
(If I make these functions larger I can get away with just a single -C)

It seems to be able to determine that all of the lines in both files
originated from the file abc.

Now the problem is that if I make a change to the function moo in the
file abc in the original repo and the try to pull it into the second
repo I always get merge conflicts. Is this expected? Do any of the
various merge algorithms in git handle these situations?

Nathan Bullock