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Lenovo agrees $300m joint venture with Compal

Lenovo Group has formed a $300m joint venture with contract laptop PC maker Compal Electronics, Reuters has reported. According to the terms of the deal, Lenovo will own 51% of joint venture Lienpal (Hefei) Ltd, with Compal, the world's second-largest contract PC maker, holding the remainder, the companies said. Both companies will invest $100m initially followed by an additional $200m over the subsequent 18 months, depending on business climate and capacity expansion.