Downer EDI plans to merge its Australian and New Zealand infrastructure businesses into one company, Downer Infrastructure.
The Australia-based engineering company said it will then have three businesses - Infrastructure, Downer Mining and Downer Rail.
Chief executive Grant Fenn said the merger will deliver a range of benefits flowing from greater collaboration including sharing of skills, knowledge and best practice.
"The establishment of Downer Infrastructure will help us optimise our performance, deliver better results for our customers and implement change more effectively," Fenn said.
In both countries Downer Infrastructure operates in the transport, water, communications and power markets, employing about 14,000 people. It had A$8.4 billion of work in hand at Dec. 31 and contributed about half the parent company's earnings before interest and tax.