SAO PAULO, Sept 25 (Reuters) - Brazilian education

companies Cogna and Yduqs have been in talks for a potential

merger, Valor Economico newspaper reported on Wednesday, citing

sources.

No document was signed between the companies, according to

the newspaper.

Cogna had previously tried to buy Yduqs

, but Brazilian antitrust watchdog CADE

rejected the deal

in 2017, citing excess market power stemming from the

potential tie-up.

At the time Cogna and Yduqs were called Kroton and

Estacio, respectively.

Valor said in the report that the current talks have

already faced divergences, as Cogna wants to include its basic

education assets in the potential deal, while Yduqs has no

interest in such an arrangement.

Yduqs is focused on the high-education sector, while

Cogna has broad operations, owning from basic schools to

colleges.

Yduqs declined to comment on the deal, while Cogna did

not immediately respond to a request for comment outside normal

business hours.