Wolverhampton & Dudley Breweries (W&DB) has said it is in takeover talks with brewer and pub owner Jennings Brothers.
W&DB has been expanding rapidly
W&DB, which brews Marston's Pedigree, said it was in talks over a bid of 430p per share, which would value Cumbria-based Jennings at £46m ($86m).
The continued operation of Jennings' brewery in Cockermouth would be "key", W&DB said.
Jennings brews beers such as Cumberland Ale and Cocker-Hoop, and also operates 128 pubs across northern England.
"We believe that, if final terms can be agreed, W&DB would provide a good home for Jennings," said Jennings' chairman John Rudgard.
"Jennings' high quality pub business and strong brands represent an excellent geographic fit with W&DB's existing operations.
"The deal would protect and develop Jennings' heritage within a far larger and stronger group."
If completed, the takeover would be the latest in a series of expansionary moves from W&DB over the past year.
After a refinancing in March last year gave it funds to finance takeovers, W&DB has snapped up Wizard Inns and Burtonwood.
In addition to Marston's Pedigree, W&DB also brews Banks's, Hanson's and Mansfield beers. It also operates the Pitcher & Piano and Bostin' Locals pub chains.
W&DB's shares closed trading on Monday up 11p at 1141p.