United Technologies and Raytheon are merging in an aerospace mega-deal

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United Technologies and Raytheon are merging in an aerospace mega-deal
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United Technologies and Raytheon are merging to create an aerospace and defense powerhouse, the two companies announced

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 million. 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.

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. Read MoreThe combined company will be named Raytheon Technologies Corporation, according to a statement from the companies.

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