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NEW YORK — United Technologies Corp. and Raytheon Co. are in talks about a deal that would create an aerospace and defense industry giant, according to a person familiar with the matter.

The all-stock transaction could be announced in the coming days, according to the Wall Street Journal, which first reported the talks. United Technologies has a market valuation of about $114 billion, while Raytheon is valued at about $52 billion.

A deal with Raytheon would extend the transformation of United Technologies under Chief Executive Officer Greg Hayes, who is already planning to spin off the company’s Carrier climate-controls and Otis elevator operations. With Raytheon, Hayes would double down on aerospace and defense after last year completing the $23 billion acquisition of Rockwell Collins, a provider of touchscreen cockpit displays and other aircraft parts.

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“It would be an enormous supplier to the primes, particularly Boeing, which would give the new company more negotiating power,” said Richard Aboulafia, an aerospace analyst with Fairfax, Va.-based Teal Group. He added that rationalizing the combined entity could be “enormously complicated” with United Technologies’ acquisitions.

Hayes is expected to lead the new company, while Raytheon’s Thomas Kennedy would become chairman of the combined entity, the paper said.

It would be a powerhouse in defense contracting, with products from Patriot missiles to the engines on Lockheed Martin Corp.’s F-35 fighter jet.

Combining United Technologies’ aerospace business, which is expected to generate $50 billion in revenue in 2020, and Raytheon’s $30 billion would create the second-biggest Western aerospace defense company, according to Douglas Rothacker, an aerospace/autos analyst at Bloomberg Intelligence. That puts it behind Boeing Co. but ahead of Airbus SE, offering an “impressive breadth of products” from commercial to defense systems, he said.

Still, M&A in the industry slowed to $40 billion in the 12 months through March, according to Bloomberg Intelligence, as the deal also comes amid cost pressures on suppliers.

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“Aerospace suppliers have been, and will continue to be, under immense pressure from Boeing and Airbus to cut costs,” Rothacker said. “We’ve seen consolidation in the sector as a way to counter these pricing and competitive pressures, and also diversify to add revenue streams.”

Michele Quintaglie, a spokeswoman for United Technologies, declined to comment. Mike Doble, a spokesman for Raytheon, didn’t immediately respond to a voice mail requesting comment outside of office hours.

United Technologies shares are trading at 16.6 times estimated earnings, slightly ahead of the 16 times for Raytheon. Both stocks have risen more than 20 percent this year, exceeding the 15 percent gain in the S&P 500 Index.