(Reuters) -Swiss-based bottler Coca-Cola HBC ( CCHBF ) has agreed to buy a 75% stake in its African counterpart for a total of $2.6 billion, the firm said on Tuesday, creating the world's second-largest Coca-Cola bottling partner by volume.

Coca-Cola HBC ( CCHBF ) will acquire U.S. based Coca-Cola's around 42% stake in Coca-Cola Beverages Africa (CCBA) and the Gutsche Family Investments' entire stake in a deal it said in a statement values the African bottler at $3.4 billion.

The transaction puts the combined group second behind Coca-Cola FEMSA in terms of Coca-Cola bottling volumes and expands Coca-Cola HBC's ( CCHBF ) footprint in Africa to tap into growing demand led by younger consumers in 14 new markets.

COCA-COLA HBC HAS OPTION TO BUY REMAINING 25%

Coca-Cola HBC ( CCHBF ), which is already listed in London and Athens, also intends to pursue a secondary listing on the Johannesburg Stock Exchange and said it would cancel its share buyback programme with immediate effect.

"Coca-Cola HBC ( CCHBF ) is a strong and valued bottler that will help usher in the next chapter of growth for CCBA," said Coca-Cola Chief Operating Officer Henrique Braun. Atlanta-based Coca-Cola owns about 23% of Coca-Cola HBC ( CCHBF ).

Founded in 2014, CCBA accounts for about 40% of all Coca-Cola volume sold in Africa, including drinks such as Fanta, Sprite and Monster.

Under the deal, Coca-Cola HBC ( CCHBF ) said it has an option to buy Coca-Cola's remaining 25% stake in CCBA within six years.

Coca-Cola HBC's ( CCHBF ) shares were down 4.2% at 3390 pence at 0710 GMT, leading losses on the broader FTSE 100 index.

Separately, on Tuesday, the company reported a 5% rise in third-quarter organic revenue, sharply lower than its 13.9% growth a year earlier, as consumer sentiment remained subdued.

However, the bottler said it still expects organic revenue growth at the top end of its 6% to 8% range in 2025, as it raises prices.