These are the packages that would be merged, in order:

Calculating dependencies ... done!
Dependency resolution took 1.60 s (backtrack: 0/20).

[ebuild  N     ] app-crypt/freepg-2.5.20::gentoo  USE="bzip2 nls readline smartcard ssl tofu -doc -ldap (-selinux) -test -tools -tpm -usb -user-socket -wks-server" 7455 KiB
[ebuild   R    ] app-alternatives/gpg-1-r3::gentoo  USE="freepg* nls ssl -reference* -sequoia" 0 KiB
[uninstall     ] app-crypt/gnupg-2.5.18::gentoo  USE="alternatives bzip2 nls readline smartcard ssl tofu -doc -ldap (-selinux) -test -tools -tpm -usb -user-socket (-verify-sig) -wks-server" 
[blocks b      ] app-crypt/gnupg ("app-crypt/gnupg" is soft blocking app-crypt/freepg-2.5.20)

Total: 2 packages (1 new, 1 reinstall, 1 uninstall), Size of downloads: 7455 KiB
Conflict: 1 block (all satisfied)

The following USE changes are necessary to proceed:
 (see "package.use" in the portage(5) man page for more details)
# required by app-crypt/freepg-2.5.20::gentoo
# required by =app-crypt/freepg-2.5.20 (argument)
>=app-alternatives/gpg-1-r3 freepg -reference