Sumitomo Mitsui Financial Group, Inc. (TSE:8316) is in talks to buy a portfolio of commodity loans from ABN AMRO Bank N.V. (ENXTAM:ABN) as the Dutch lender exits the industry, according to people familiar with the matter. A potential deal would see the Japanese lender take over ABN's long-term loans, which extend past the end of the year, said the people, who asked not to be identified because the talks are private. For the Dutch bank, it could also mean an earlier-than-planned exit from the commodity trade finance business.

ABN AMRO, once a key lender to the commodities industry, last year said it was going to leave the business after racking up losses from a series of trading scandals. At the time, then Chief Financial Officer Clifford Abrahams said the bank would let existing loans wind down over the next three to four years. Talks over the deal are still ongoing, and no final agreement has been reached, the people said.

Sumitomo and ABN AMRO declined to comment on the talks.