Listers Group is thought to have its sights set on Taylors BMW and Mini in Boston.
The acquisition, if successful, would give Listers its second dealership for the brands.
The top 20 AM100 retailer took on its first franchise for the prestige marques when it bought Sorensons BMW and Mini in King’s Lynn last October.
That prompted speculation that it would seek further bolt-on acquisitions in East Anglia and Lincolnshire.
A source close to the business claimed the talks were at an advanced stage.
Managing director Terry Lister had not returned AM’s calls as we went to press.
The sale would leave current owner Taylors Service Garages focused on its Peugeot, Citroën, Ford and Vauxhall businesses at three remaining sites in Lincolnshire.
Managing director Nigel Taylor said it was “too premature” to discuss the sale.