FRANKFURT (dpa-AFX) - Investors on the German stock market reacted with shock on Monday to the surprise upcoming change of boss at Thyssenkrupp. The shares of the steel and industrial group slumped 14 percent to 6.284 euros by the afternoon. They thus reached the level of the beginning of the month and were by far the weakest stock in the MDax. The index of mid-cap stocks barely moved from the spot.

Group CEO Martina Merz is quitting early. She asked the Supervisory Board's Personnel Committee to terminate her contract in good time. The Committee intends to comply with the request. The Personnel Committee has already proposed a successor to the Supervisory Board. Accordingly, the current interim head of the automotive supplier Norma Group, Miguel Ángel López Borrego, is to become the new CEO on June 1. Norma's papers recently gained slightly, gaining more than one percent.

According to the statement, Martina Merz said, "Significant strategic decisions have been made." Promising talks have been initiated with potential partners for the spin-off of the steel division.

With the surprise change at the top of thyssenkrupp's board, investors now fear further delays in the group's important restructuring, said trader Frederik Altmann of Alpha Wertpapierhandel. In addition, the succession plan is not seen as optimal, he added.

López Borrego reportedly studied business administration in Mannheim and Toronto after graduating from high school in Hesse. The German-born Spaniard began his professional career as a controller at the automotive electronics manufacturer VDO. At Siemens, he was chief financial officer of various business units. From 2018 to 2022 he was head of Siemens Spain and chairman of the board of directors of Siemens-Gamesa Renewable Energy.

Thyssenkrupp Supervisory Board Chairman Siegfried Russwurm described López Borrego as an "internationally minded manager with broad industrial experience in the fields of digitalization and Industry 4.0." He is also a very experienced financial expert, he added.

Meanwhile, there was also criticism on the market of Merz's leadership. After the successful sale of its elevator division in 2020, it had to put its plans for the IPO of a hydrogen electrolysis unit on hold due to market turbulence and has struggled to find a partner for its shipbuilding division. Most importantly, Merz has faced criticism over the slow pace of divesting the company's centerpiece, its steel division, which has always been a drag on earnings. Thyssenkrupp has repeatedly failed to find an external partner for the business. A spin-off has proved difficult because of high pension burdens, strong unions and the huge investments needed to decarbonize production.

With the price slide at the beginning of the week, the chart picture for thyssenkrupp shares deteriorated significantly. The price fell below the 21- and 50-day moving averages, which describe the short- and medium-term trends for technically oriented investors. However, the 200-day line still provides support. According to them, it describes the long-term development./la/jsl/he