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Starbucks buys Teavana to expand tea business

Starbucks drinkers sit outside of Starbucks Coffee in Santa Clara, Calif., Tuesday, May 2, 2006. (Paul Sakuma)

November 15, 2012 12:00:00 AM PST
Starbucks is making a push to create a new wave of shops for caffeine fans.

The Seattle-based coffee company is buying Teavana Holdings Inc. for $620 million as it moves to expand its tea business.

Teavana sells high-end loose-leaf teas in 300 shopping mall locations.

Starbucks wants to grow Teavana into stand-alone shops with tea bars where customers can buy hot and cold drinks.