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I am reading this article inside Microsoft Docs:

Restrict sharing of SharePoint and OneDrive content by domain

and I know that if I define an Allow list inside the company wide settings then I can select from this list to define a more restrictive allow list inside the site collection.

But what happen if inside the company wide settings I define deny list, then can I overcome it by defining the denied domains from the company wide setting as allow domains inside the site collection?

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When you block the specific domain in the tenant level, then set the specific domain as allowed in the site collection level, you cannot share files with people in this specific domain.

Because in the case of conflicts, the organization-wide configuration takes precedence over the site collection configuration.

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