Australia's largest automotive retailer Automotive Holdings Group Ltd (ASX:AHE) has confirmed it is in discussions with several firms to acquire car dealerships although an agreement is yet to be reached.

"AHE confirms that it is in preliminary negotiations with a number of automotive groups within Australia," the company said in a statement on Friday.

Automotive's comment follows media reports that it is in advanced talks to buy Trivett Automotive Group, which owns 22 prestige car dealerships in Sydney and Melbourne.

"It (AHE) further confirms that no agreement has been reached in relation to any of these negotiations and no documents have been executed."

"No assurance can be given that any transaction will be entered into in relation to any of these automotive groups," the company said.

By 1130 AEDT, shares in Automotive Holdings Group lifted 6 cents, or 2.75 per cent, at $2.24

The company will hold its annual general meeting today.

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