Sanyo and Nokia recently announced that they have reached a preliminary agreement on the establishment of a joint venture company which will merge the two companies' CDMA2000 operations. GSM and WCDMA businesses will not be merged into the new joint venture. A definitive agreement is expected to be signed in the second quarter of 2006. According to the Nihon Keizai Shimbun, both companies are expected to take a 50% stake in the joint venture, which will likely be located in the United States.