PARIS, Feb 2 (Reuters) - Eramet (ERMT.PA) , opens new tab tumbled on the Paris stock market on Monday as the firing of its CEO just months into his term caught investors by surprise and raised questions over governance at the nickel, manganese and lithium miner partly owned by the French state.

Eramet said on Sunday it had dismissed Paulo Castellari due to disagreements on "operating methods", and temporarily re-appointed Chairwoman Christel Bories to the role she had passed to Castellari last May.

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The decision stunned analysts who credited Castellari with early efforts to overhaul the group that has faced declining results and rising debt in the past year due to weak metal markets and investments in battery mineral lithium.

Eramet shares were down nealy 8% by late morning, the biggest fall in the SBF 120 index in Paris.

"This announcement comes as a shock," Oddo BHF analyst Maxime Kogge said in a note. "With his departure, Eramet enters another transition period that will make it harder to carry out much needed cost reductions and operational improvements."

Castellari in December unveiled initial plans to revive performance, including higher productivity at its manganese business in Gabon.

Bories told reporters on Sunday that there had been problems in coordination between Castellari and the board and teams, adding his dismissal had nothing to do with financial results and that the group's strategy remained unchanged.

A company source said tensions between Bories and Castellari over decision-making were known but that the CEO's firing was also a surprise internally.

The French state "reaffirms its commitment to the stability and the performance of Eramet," a finance ministry official said, without commenting specifically on Castellari's firing.

The state is Eramet's second-largest shareholder after the Duval family.

While the ousting of Castellari was probably a joint decision, diverging interests between the Duvals keen on shareholder payouts and the state focused on growth investments could be "a drag on the replacement process," Kogge said.

The main shareholders fought in 2021 over Bories' re-appointment as CEO and chair for a second term. The Duvals had sought to replace Bories before agreeing to her new term.

https://www.reuters.com/business/eramet-shares-tumble-sudden-ceo-firing-rattles-investors-2026-02-02/