Reuters | Sara Lee Corp’s planned sale of its body care business to Unilever Plc/NV is being held up by further European Commission review and the company is delaying some share buybacks.

The $1.3 billion asset sale is now expected to close in the fourth quarter, Unilever said, citing the expected move to Phase 2 of the approval process. Sara Lee shares were down 2.3 percent Tuesday morning.

Neither company said what exactly the European Commission is studying more closely. But Unilever is already the world’s biggest deodorant maker and would be adding to its strength in that sector with Sara Lee’s Sanex brand.

“Since Unilever will acquire a portfolio of more than 90 brands, across a
number of categories and 19 European countries, we expect that the
commission needs to spend more time understanding the detailed market
impact of the deal, country by country,” Sara Lee spokesman Mike Cummins
said.

The delay in the Unilever deal comes at a time of uncertainty for Sara
Lee. Earlier this month, Chief Executive Brenda Barnes took a medical
leave of absence, with no details provided. Chief Financial Officer
Marcel Smits is now serving as acting CEO.

Sara Lee plans to use $800 million in proceeds from the body care sale
and from other divestitures to repurchase shares.

The company’s current $500 million accelerated share repurchase program
is expected to conclude this summer. After that, the company will
recommend repurchases as various divestitures close, Sara Lee said.

Sara Lee said it still plans to buy back $2.5 billion to $3.0 billion of
stock over a three-year period, with $1 billion to $1.3 billion to be
repurchased in calendar-year 2010.

Sara Lee, whose businesses include Hillshire Farm lunch meats and Sara
Lee bread, has been remaking its portfolio by selling off noncore
businesses and focusing on its main food and beverage businesses
instead.

Aside from the Unilever deal, it is also set to sell parts of its Ambi
Pur air freshener business to Procter & Gamble Co .

Earlier this month, the company said it would sell its 51 percent stake
in Godrej Sara Lee Ltd, a joint venture that markets insecticides in
India, to Godrej Consumer Products Ltd .

Sara Lee shares were down 33 cents at $14.03 Tuesday morning on the New
York Stock Exchange.