The Shropshire Union Railways and Canal Company was a Company in England, formed in 1846, which managed several canals and a railway. It was leased by the London and North Western Railway from 1847, and bought by it in 1922, but continued to act as a semi-autonomous body, managing the canals until their abandonment in 1944. With the passing of the Railways Act 1921 (Grouping Act) the company became part of the London, Midland and Scottish Railway (LMS).
In 1844, the Ellesmere and Chester Canal Company, which owned the broad canals from Ellesmere Port to Chester and from Chester to Nantwich, with a branch to Middlewich, began discussions with the narrow Birmingham and Liverpool Junction Canal, which ran from Nantwich to Autherley, where it joined the Staffordshire and Worcestershire Canal. The two companies had always worked together, in a bid to maintain their profits against competition from the railways, and amalgamation seemed to be a logical step. An agreement was worked out by August, and the two companies then sought an Act of Parliament to authorise the takeover. This was granted on 8 May 1845, when the larger Ellesmere and Chester Canal Company was formed.
Almost immediately, a committee was set up to look at options for converting all or part of the canals into railways, and extending the network. Although they had already tried using a steam tug to haul a train of boats, they realised that not all of their canals were suitable for such use, and that a locomotive on a railway with good gradients offered a better solution. The Staffordshire and Worcestershire Canal were alarmed by the announcement that many of the canals might close, on the basis that removal of one would have a serious effect on another, and sought to oppose the action.
However, the joint company obtained an Act of Parliament in 1846, which reformed it as the Shropshire Union Railways and Canal Company (SUR&CC). The 1846 Act authorised the new company to take over the Shrewsbury Canal and to buy the Montgomery Canal and the Shropshire Canal. The intent behind the 1846 Act was to build railways at a reduced cost, by using the existing routes of the canals they owned. In 1847, the Company agreed to the terms of a lease from the London and North Western Railway Company (LNWR), and so lost its independence after little more than a year, but continued to manage the canals under its control.