CNN — United Technologies and Raytheon are joining forces to create an aerospace and defense powerhouse. It is one of the biggest corporate mergers of 2019.

The two companies announced Sunday that they have agreed to combine in an all-stock deal they termed a “merger of equals.” The new company would have annual revenue of about $74 billion. Together, UTC and Raytheon are worth about $166 billion in market value now. UTC makes up the lion’s share of that.

Under the terms of the deal, United Technologies shareholders would own 57% of the combined company, with Raytheon shareholders owning the rest.

“The combination of United Technologies and Raytheon will define the future of aerospace and defense,” Greg Hayes, United Technologies chairman and CEO, said in a news release. The Wall Street Journal reported Saturday that a deal was in the works.

UTC is an industrial conglomerate, and makes everything from jet engines to elevators. It owns the Pratt & Whitney engine maker as well as Collins Aerospace. Raytheon is rooted in defense, and produces missile defense systems and cybersecurity solutions. The companies supply the likes of Airbus and Boeing.

The combined company will be named Raytheon Technologies Corporation, according to a statement from the companies. It will offer “expanded technology and R&D capabilities to deliver innovative and cost-effective solutions aligned with customer priorities and the national defense strategies of the U.S. and its allies and friends,” the companies said.

The combination comes months after UTC announced that it would spin off its Otis elevator division and Carrier building systems unit — a breakup meant to help the remaining company focus squarely on aerospace. The merger with Raytheon excludes those companies, which are expected to separate from UTC in the first half of next year.

Correction: An earlier version of this story misstated the annual revenue of the combined company.

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