In an attempt to become more competitive, the Grand Junction company talked to the Regent's Canal company, and the idea of a much larger concern began to develop. An Act of Parliament was obtained in August 1928, which allowed the amalgamation of the Regent's Canal, the Grand Junction, the Warwick and Birmingham, the Birmingham and Warwick Junction and the Warwick and Napton Canals. As from 1 January 1929, the new company began operating, and the old Grand Union Canal became part of the (new) Grand Union Canal. Having raised £881,000 to enable the route from Birmingham to London to be widened to take boats with a beam, and received Government grants to cover interest payments on loans of £500,000, the work began in 1931. The company then decided they could get grants for widening the Foxton and Watford locks, and under an Act of Parliament obtained in 1931, bought the Leicester, the Loughborough and the Erewash Canals. The estimated cost of widening the two flights was £144,000, but the Government refused to make a grant later that year, and the work was never carried out.