Yes, it's possible with DFSORT/ICETOOL. But you need to give more details.
Please show an example of the records in each input file (relevant fields only) and what you expect for output. Give the starting position, length and format of each relevant field. Give the RECFM and LRECL of the input files. If file1 can have duplicates within it, show that in your example. If file2 can have duplicates within it, show that in your example.