// Waterstones buys Barnes & Noble for £538m

// CEO James Daunt will also take the role of Barnes & Noble CEO once deal is completed

// Barnes & Noble is currently the largest book retailer in the US

Waterstones parent company Elliott Advisors has acquired US book retailer Barnes & Noble in a $683 million (£538 million) deal.

Waterstones chief executive James Daunt will also take the role of Barnes & Noble chief executive upon completion of the deal.

“Physical bookstores the world over face fearsome challenges from online and digital,” Daunt said.

“We meet these with investment and with all the more confidence for being able to draw on the unrivalled bookselling skills of these two great companies.”

Barnes & Noble founder Leonard Riggio said: “We are pleased to have reached this agreement with Elliott, the owner of Waterstones, a bookseller I have admired over the years.”

Riggio will be stepping down as Barnes & Noble chief executive after serving for 54 years.

Barnes & Noble is currently the largest book retailer in the US and serves 627 communities across all 50 states.

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