Commodity giant Glencore is eyeing a takeover bid of US grain trader Bunge.

In a statement released Tuesday, the Switzerland-based company confirmed that is has approached Bunge about "a possible consensual business combination." Glencore also added that there is "no certainty that any transaction will occur."

Bunge shares jumped after the news broke Tuesday.

Glencore purchased Viterra back in 2012 for a price tag of over $6 billion, but since then has sold 49 per cent of its agriculture unit.

Bunge owns a number of oilseed processing plants in Canada including a facility at Dixon.

The company is part of a group that owns a majority share of G3 Global Grain Group, which was formed following the privatization of the Canadian Wheat Board.