Waltham, Mass., and Farmington, Conn. - Raytheon Co. (NYSE: RTN), which has operations in Indianapolis and Fort Wayne and United Technologies Corp. (NYSE: UTX) are planning what they call a "merger of equals." The all-stock deal excludes Carrier and Otis, which are set to separate from United Technologies next year. The combined company, to be called Raytheon Technologies Corp., will be headquartered in Massachusetts.

The companies say the combined operation will have about $74 billion in 2019 sales. Raytheon Chief Executive Officer Tom Kennedy says the deal brings a "tremendous opportunity for our future success," while UTC CEO Greg Hayes says it will "define the future of aerospace and defense."

The combined company's board of directors will include eight members from United Technologies and seven from Raytheon, including the lead director. Kennedy will serve as executive chairman and Hayes will be CEO.

The merger is expected to be complete in the first half of 2020. It's not expected to affect the timing of the Carrier and Otis separations.