The best way to deal with someone like this is from a distance, preferably a great distance. The good news is that he is your co-worker, not your manager.
If you are looking for ways to change him, you are fighting an uphill battle. The characteristics you described are part of his personality, and it will do you no good to try to reason with him, give him hints on active listening, or suggest ways to deal more effectively with people. He already has all the answers, and he has probably had them for a long time.
Nonetheless, when you work with him, be assertive and businesslike, and stand up for yourself. If he senses that he can push you around, that is exactly what he will do. By showing that you are not intimidated by his bravado, he may back off a little. And, whether he does so or not, you will not go home with your self-esteem in shambles.
In addition, if you must work with him or have lunch with him, try to include some co-workers. By doing so, you can actually have some normal human interaction, and he may be less combative when facing more than one person.
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