US firm backs FMG for $3bn

California-based financial services giant Capital Group has bought a 5 per cent stake in Fortescue Metals Group for an estimated $3 billion.

The notice of a new substantial holder was posted to the ASX this morning, revealing The Capital Group Companies and its related corporates had acquired close to 154 million shares in Mr Forrest’s business.

The $3 billion estimate is based on FMG’s closing price this afternoon of $20.44.

Going off FMG’s top 20 shareholders at December 31 last year, the new backer sits as the third largest shareholder excluding custodians.

Minderoo is FMG’s biggest shareholder with a 29.84 per cent stake.

Capital Group was founded in 1931, has 7,500 staff and is believed to manage some $2.6 trillion in assets.