New York (CNN Business) 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.

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