A U.S. appellate court has nixed an injunction that halted the planned merger between Fujifilm Holdings Corp. and U.S. printer and copier maker Xerox Corp., the Japanese company said Wednesday.

Following the New York State Appellate Court decision on Tuesday, Fujifilm intends to continue talks with Xerox to realize the merger, although the outlook remains unclear with executives opposed to the deal now comprising a majority on Xerox's board.

Fujifilm said in a statement that the original merger plan, announced in January, is "the best option" for shareholders of both companies.

The court's "decision will allow us to discuss with Xerox the fulfilment of the original agreement. All Xerox shareholders ought to be able to decide for themselves the operational, financial, and strategic merits of the transaction to combine Fuji Xerox and Xerox," it said.

In February, Darwin Deason, a major Xerox shareholder opposed to the merger, filed for an injunction with a New York court, winning a decision blocking the deal in April. Fujifilm later appealed the ruling.

In May, Xerox scrapped the merger deal with Fujifilm after reaching a settlement with Deason and another major shareholder, Carl Icahn, who also criticized the agreement.

Under the original plan, Fujifilm would acquire a 50.1 percent stake in Xerox and merge it with joint venture Fuji Xerox Co. The Japanese company currently holds a 75 percent stake in Fuji Xerox, with Xerox owning the rest.