Company puts finishing touches to Mowlem deal as chief executive John McDonough draws up fresh structure

This week marked the end of an era as Carillion decided to remove the name of John Mowlem from the ranks of Britain's major contractors.

Carillion's 拢313m takeover of the 184-year-old company will create a 拢4bn-turnover group that will be able to compete with Balfour Beatty, the country's biggest contractor.

Carillion has restructured in the wake of the takeover. In an interview with 好色先生TV, and in an internal memo to the staff of both companies, John McDonough, Carillion's chief executive, outlined his plans for the company.

Carillion will be divided into 15 divisions, which will report to Don Kenny, business services director, Chris Girling, finance director, and Roger Robinson, head of infrastructure and international operations, who are main board directors. Eleven of the divisions they oversee will be run by Carillion staff.

The Mowlem brand will disappear, with the exception of Barclay Mowlem, the Australian business, and Mowlem Pall Mall, the cleaning service firm. Simon Vivian, Mowlem's chief executive, Paul Mainwaring, its finance director and Arthur Moore, its development director, will stay on "for a period" to lead the integration process. Mowlem's headquarters in Isleworth, Middlesex, will close and Paul Kirk, managing director of Carillion Transport, will leave the firm.

McDonough said a "few hundred" people would lose their jobs as a result of the takeover. He now runs a company that employs more than 40,000.

The memo makes it clear that Carillion's culture will prevail. One paragraph reads: "Carillion's success is based on the rigorous application of its policies and processes. These will be applied across the group and include our risk management processes, major projects committee, monthly performance review meetings, strategy forum, supply chain forum, work-winning forum, HR forum and the IT steering team."

However, Mowlem staff are expected to carry their contract terms across to Carillion.

Carillion is now a business with a regional network, more work in the defence sector and more PFI equity stakes. Carillion has declared that it has wiped 拢120m off Mowlem's balance sheet - 拢45m in the value of contracts and 拢75m in assets.