Raytheon and United Technologies announced a merger Sunday in an all-stock deal that would create the second largest aerospace and defense company in the country.

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The companies have combined annual sales of $74 billion.

United Technologies, which includes Collins Aerospace and Pratt & Whitney, makes jet engines, controls and seats. Raytheon is a large defense contractor.

The combined company will be called Raytheon Technologies. The merger is expected to close in the first half of 2020.