European steel giant Arcelor SA is reportedly seeking stakes in the mid-sized, state-owned Qingdao Iron and Steel Group Co, as the Netherlands-based Mittal Steel Co. is poised to displace the Arcelor as the world's largest steelmaker after announcing its US$4.5bn acquisition of the US-based International Steel Group. Arcelor has confirmed it wants to expand its assets in China, but it has not disclosed which stakes it plans to acquire.