Tesco is considering a takeover of Majestic Wine as it joins the auction for Britain’s largest specialist wine retailer.
It is among a number of bidders circling the business after owner Fortress Investment Group launched a formal sale process several weeks ago.
A potential price has not been disclosed, although Majestic’s recent performance is expected to result in a deal worth hundreds of millions of pounds.
Other bidders are also understood to be involved in the process, but their identities have not yet emerged.
A takeover would represent a rare major acquisition for Tesco, whose last deal on a comparable scale was its £3.7bn purchase of wholesaler Booker in 2018.
It would also significantly expand Tesco’s exposure to the specialist wine market.
Majestic operates more than 200 stores across the UK and Jersey and employs over 1,000 people. Fortress bought the retailer for £95m in 2019 when it was separated from Naked Wines.
Since then, the chain has added more than 20 stores and invested in its ecommerce operation and product range, while also growing its hospitality supply business.
Majestic has expanded beyond its core retail estate in recent years, acquiring wine bar business Vagabond out of administration in 2024 and drinks distributor Enotria last year.
Its commercial arm now supplies wine and spirits to pubs, restaurants, hotels and other hospitality operators, alongside Majestic’s consumer-facing stores and website.
That part of the business could also provide a strategic fit with Tesco-owned Booker, which supplies independent retailers and hospitality businesses across the UK.
However, there is no indication at this stage of how Tesco would structure a potential deal.
Fortress appointed advisers around six months ago to examine options for Majestic before formally putting the business up for sale.
The private equity firm has backed a series of UK consumer businesses in recent years, including Poundstretcher and Loungers. Its portfolio describes Majestic as the UK’s largest specialist wine retailer.
Majestic has continued to grow despite pressure on consumer spending. Earlier this year, the retailer reported its strongest Christmas to date, serving almost 11 per cent more customers over the 2025 festive period than a year earlier.
Neither Tesco nor Fortress has publicly confirmed that a transaction will take place.
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