Oct 21 (Reuters) - Bottler Coca-Cola HBC AG

reached an agreement on Tuesday to acquire a controlling stake

in Coca-Cola Beverages Africa (CCBA) from The Coca-Cola Company ( KO )

and Gutsche Family Investments in a deal worth $3.4

billion, creating the world's second-largest Coca-Cola bottling

partner by volume.

Coca-Cola will sell about 42% of its stake in CCBA to

Coca-Cola HBC ( CCHBF ), while the bottler is acquiring the entire 33.48%

stake held by Gutsche Family Investments for a combined purchase

price of $2.6 billion.

The deal values 100% of CCBA at an equity value of $3.4

billion.

CCH, which packages drinks such as Fanta, Sprite and

Monster, intends to pursue a secondary listing on the

Johannesburg Stock Exchange as part of the deal.

CCBA operates in 14 countries across Africa and accounts for

about 40% of all Coca-Cola product volume sold on the continent.

The companies are targeting the transaction to close by the

end of 2026 and have agreed to a separate option for Coca-Cola

HBC ( CCHBF ) to acquire Coca-Cola's remaining 25% stake within six years

of closing.

(Reporting by Yamini Kalia in Bengaluru; Editing by Subhranshu

Sahu)