Fujifilm on Wednesday entered into an agreement with Xerox to combine its Fuji Xerox subsidiary with Xerox.

As per the agreement, Xerox shareholders will receive a $2.5 billion cash dividend, or roughly $9.80 per share, and a 49.9 percent stake in the joint venture. Fujifilm will own the remaining 50.1 percent controlling stake in the combined company. The transaction has been approved by the Board of Directors of both companies and Fujifilm executives are confident the deal will be approved by shareholders.

Confusingly, the new joint venture will become a full subsidiary of Xerox with Xerox changing its name to the "new" Fuji Xerox.

The combined company is expected to deliver $1.7 billion in total annual cost savings by 2022, $1.2 billion of which is expected to be achieved by 2020. To get there, roughly 10,000 jobs will be cut in Asia, Bloomberg reports.

Xerox CEO Jeff 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 new Fuji Xerox, he added, will be better positioned to compete in today's environment with truly global scale, increased presence in fast-growing markets and innovation capabilities to effectively meet customers' rapidly-evolving demands.

Jacobson will serve as CEO of the "new" Fuji Xerox.