Bargain Booze owner Conviviality Retail has confirmed that it is in talks to buy Punch Taverns-owned drinks wholesaler Matthew Clark Holdings.

Matthew Clark is the UK’s biggest drinks supplier to the nation’s pubs and has been exploring options for a sale since May in order to provide a cash boost for embattled owner Punch.

The pub company, which owns 3,654 pubs throughout the UK, holds 50% of Matthew Clark in partnership with Australian private equity company CHAMP.

Shares in Conviviality have been suspended until discussions end or until a deal goes ahead.