"The transaction will create a premier systems provider with advanced technologies to address rapidly growing segments within aerospace and defense," the statement said.

The new company -- which will be named Raytheon Technologies Corporation -- is expected to have around $74 billion in sales this year, it said.

It will not include Otis elevators and Carrier air-conditioning and building systems -- non-defense and aerospace enterprises that the statement said "are expected to be separated from United Technologies in the first half of 2020."

Raytheon is best known for its Patriot air defense systems, which gained fame during the first Gulf War, and its Tomahawk cruise missiles, often the first weapons fired from US navy ships in recent conflicts.

United Technologies is a big player in the aeronautics industry with its Pratt and Whitney engines, which are used in civil and military aircraft, including the F-35 multi-role stealth fighter, considered one of the most advanced combat aircraft in the world.