Japan’s Fujifilm Holdings Corp. is taking control of Xerox Corp. (NYSE: XRX) in a deal that creates an $18 billion company. The deal has been unanimously approved by the boards of both companies, but still needs shareholder approval. Fujifilm executives said they were confident all shareholders will approve the deal.

Xerox will be subsumed into a 55-year-old joint venture the company currently operates with Fujifilm in Asia, with the joint venture expanding to encompass all of Xerox’s operations. Current Xerox shareholders will receive a cash dividend of $9.80 per share. The cash dividend represents a 30 percent increase to Xerox’s unaffected share price before the reports of a possible deal surfaced.

The new combined company, Fuji Xerox, will trade on the New York Stock Exchange under Xerox’s ticker symbol. Tokyo-based Fujifilm will ultimately end up owning 50.1 percent of the combined entity at closing. Xerox shareholders will own 49.9 percent of the combined company.

Xerox Chief Executive Officer Jeff Jacobson will become CEO of the new combined company. Jacobson said, “The proposed combination has compelling industrial logic and will unlock significant growth and productivity opportunities for the combined company, while delivering substantial value to Xerox shareholders.”

The Fuji Xerox joint venture sells office products and services in the Asia-Pacific region. The new company will focus on developments in inkjet, imaging and artificial intelligence. In a written statement, Shigetaka Komori, chairman and chief executive officer of Fujifilm, said, “I am confident that Fujifilm’s ability to drive change as well as its experience of successful reinvention will give a competitive edge to the new Fuji Xerox, delivering significant value creation to shareholders of both the new Fuji Xerox and Fujifilm.”

If the deal goes through, total annual cost savings of $1.7 billion are expected by 2022, representing about 10 percent of total cost base of the combined Fuji Xerox. The companies expect approximately $1.2 billion of the total cost savings to be achieved by 2020.

A cost reduction plan has been put into place at the existing joint venture that aims to generate approximately $450 million in cost savings on an annualized basis. The joint venture will cut 10,000 jobs in Asia as part of the restructuring.

Xerox currently has a market value of $8.3 billion. Xerox reported fourth quarter revenue of $2.7 billion and adjusted earnings per share of $1.04, up 4 cents year-over-year. Xerox shares rose 4 percent after the news was announced.