How do different version control systems handle binary files?

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I have heard some claims that SVN handles binary files better than Git/Mercurial. Is this true and if so then why? As far as I can imagine, no version control system (VCS) can diff and merge changes between two revisions of the same binary resources.

So, aren't all VCS's bad at handling binary files? I am not very aware of the technical details behind particular VCS implementations so maybe they have some pros and cons.

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