Investing.com -- Shares in Thyssenkrupp AG O.N. (ETR:TKAG) slumped on Monday after the German industrial firm announced that chief executive Martina Merz is looking to quit.
Thyssenkrupp said it had reached a "mutual agreement" with Merz to enter into negotiations to terminate her contract. The company did not provide a reason why she was planning to step down from the role, which she has held since 2019.
Thyssenkrupp said it had recommended that Miguel Ángel López Borrego, the current CEO of machine joining components manufacturer Norma Group (ETR:NOEJ), be appointed to replace Merz from the beginning of June.
"Merz has taken over a very difficult task at a challenging time and since then has initiated a fundamental change process at Thyssenkrupp with great commitment and expertise," said Siegfried Russwurm, chairman of the supervisory board, in a statement.
Merz had been tasked with overseeing an overhaul of Thyssenkrupp after the conglomerate was brought to the brink of collapse following a series of profit warnings and a failed steel merger.
However, shareholders have voiced criticism of Merz as Thyssenkrupp made slow progress towards carving out its steel and hydrogen units.
Russwurm noted that the transformation of the business is "not yet complete."