UPDATE 2-Germany's BASF says to delist from NYSE

(Adds Bayer comment)

FRANKFURT, July 30 (Reuters) - BASF BASF.DE is to delist its American Depositary Shares (ADS) from the New York Stock Exchange (NYSE) NYX.N partly to cut costs, the German chemicals group said on Monday.

BASF, the world’s largest chemicals company by sales, said in a statement it would deregister and end its reporting obligations under the Securities and Exchange Act of 1934.

BASF said it expects the delisting to take effect on Sept. 6, 2007, at which time its ADRs (American Depositary Receipts) will no longer be traded on the NYSE.

The shares will continue to be traded in Frankfurt, London and Zurich.

“Our decision to delist from the New York Stock Exchange underlines BASF’s continuous efforts to reduce complexity and costs,” said Chief Executive Juergen Hambrecht.

“BASF’s senior management remains committed to maintaining an open dialogue with U.S. investors,” he added.

A BASF spokesman said the delisting would save more than five million euros ($6.8 million) per year.

BASF shares were up 1.8 percent at 93.37 euros at 1225 GMT, in line with the DJ Stoxx European chemicals index .SX4P.

Germanys SGL Group SGCG.DE, which makes carbon and graphite products, has also delisted from the NYSE.

At BASF rival Bayer BAYG.DE, a spokesman said the company was considering a similar move.

“Bayer is examining a delisting from the New York stock exchange and a deregistration from the SEC,” the spokesman said.

BASF said it intended to maintain its ADR programme to enable investors to retain their ADRs, as well as to facilitate trading in the U.S. over-the-counter market.

“This means that investors do not need to exchange their ADRs, unless they are restricted to investments in registered securities,” the company said. (Additional reporting by Frank Siebelt)