Tony Blair yesterday advoc ated a "free-market" approach to company takeovers, saying that the aim should be to give consumers the best deal possible.
Government interference may not benefit consumers the most, he told his monthly news conference.
"In respect of takeovers, the test to apply is for the consumer. What is the best deal for the consumer?" the Prime Minister said.
The government was not always best placed to make these decisions, he added.
"If the Government starts interfering in this process and pouring politics all over it then it is no good for the consumer and you don't succeed," he said. Concerns have been expressed about the planned takeover of British airports operator BAA by a consortium led by Spanish infrastructure company Ferrovial.
Earlier in the week Chancellor Gordon Brown said there should be no "retreat into protectionism" in Europe and cross-border mergers should be allowed to proceed.
However, he also appeared to rule out a potential takeover of Centrica by Gazprom, saying there were "questions about politics as well as economics" surrounding the Russian energy giant.
Mr Blair seemed to endorse this view, saying that although the best test of any takeover was its benefit for the consumer, it did not mean "no other circumstances can come into it".