Morgan Sindall will merge its Morgan Ashurst construction and Morgan Est infrastructure services businesses under the name Morgan Sindall.
The new division will be headed by current Morgan Ashurst managing director Graham Shennan. Mark Cutler, managing director of Morgan Est will leave the business this week as a result of the restructuring.
The company said the decision was taken because both divisions are increasingly working together on large and complex projects in sectors such as rail, aviation and defence.
Paul Smith, chief executive of Morgan Sindall, said: “I am excited about this new division, which will enable the group to provide a more focused and integrated service to clients and our joint venture partners.”