Raytheon Co. and United Technologies Corp. agreed to a merger on Sunday, creating one of the world’s largest defense companies.

The merger will close in the first half of 2020.

Under the agreement, Raytheon shareholders will receive 2.33 shares in the new company for each Raytheon share they currently have. United Technologies shareholders will own approximately 57 percent of the company.

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The two companies combined last year for more than $70 billion in sales, which would top other defense giants including Lockheed Martin and Northrop Grumman.

"Today is an exciting and transformational day for our companies, and one that brings with it tremendous opportunity for our future success. Raytheon Technologies will continue a legacy of innovation with an expanded aerospace and defense portfolio supported by the world's most dedicated workforce," said Tom Kennedy, Raytheon Chairman and CEO.

"The combination of United Technologies and Raytheon will define the future of aerospace and defense," said Greg Hayes, United Technologies Chairman and CEO.

Hayes will become the CEO of Raytheon Technologies, while Kennedy will be appointed the executive chairman.

Raytheon has previously been focused on creating missiles and cybersecurity tools. United Technologies makes products for the aerospace and building sectors, like airplane engines and space suits.

President Trump Donald John TrumpSteele Dossier sub-source was subject of FBI counterintelligence probe Pelosi slams Trump executive order on pre-existing conditions: It 'isn't worth the paper it's signed on' Trump 'no longer angry' at Romney because of Supreme Court stance MORE expressed some skepticism about the merger during an interview with CNBC on Monday.

“I’m a little concerned about United Technologies and Raytheon ... We used to have many plane companies. They’ve all merged. Now we have very few," he said.