United Technologies and Raytheon Company confirmed merger plans on June 9, 2019. Both companies are to enter an “all-stock merger of equals” to create one super-provider of aerospace and defense technologies.

The plan is that the new company will be comprised of four divisions, Collins Aerospace and Pratt & Whitney from United Technologies (UT) and Intelligence, Space & Airborne Systems and Integrated Defense & Missile Systems from Raytheon. For the purpose, Raytheon is to consolidate its current four businesses into two, while United Technologies is already separating from Otis and Carrier, that should become independent once again.

The merged company will be called Raytheon Technologies Corporation. Approximately 57% of its shares will belong to United Technologies shareowners, with the remaining approximately 43% to Raytheon shareowners. The merger is expected to be completed in the first half of 2020, providing UT  finalizes Otis and Carrier separation by the time.

The merger is the second big tie-up for United Technologies in recent years. In September 2017, the company revealed intentions to acquire Rockwell Collins. At the time, United Technologies was already the biggest aircraft parts manufacturer, while Rockwell Collins was the fourth. In November 2018, the merger was finally completed, forming new UT’s business unit called Collins Aerospace Systems.

However, this time it is not only the collaboration terms that are different. While UT and Rockwell Collins shared the same business line, primarily supplying electronics, communications and other goods to commercial aircraft manufacturers, Raytheon is a whole different story. The company is a major player the defense sector, as it supplies the U.S. government with weapons and military electronics.