MILWAUKEE (AP) -- The new MillerCoors joint venture will be based in downtown Chicago, company officials said Tuesday, opting for a neutral site over the home city of either individual brewer.

MillerCoors LLC said early on it would not settle in Milwaukee, where SABMiller PLC's Miller Brewing Co. is based, or in Golden, Colo., the home of Molson Coors Brewing Co. To do so might suggest that one partner had more power than the other, company spokesman Julian Green said.

"Our decision in no way diminishes the very positive view we have of Milwaukee or Denver," Green said. "It's just part of the agreement to be fair and balanced."

The company's president, Tom Long, lauded Chicago as the best alternative because of its "access to an attractive base of talent, transportation and business resources."

Both the state of Illinois and the city of Chicago provided investment packages totaling nearly $25 million, Green said.

MillerCoors is making its own $39.5 million investment, according to the state's Gov. Rod Blagojevich.

"This investment will contribute to a stronger regional economy, which will help create new jobs in the state and opportunities for the company to grow in the future," Blagojevich said.

The new headquarters will house 300 to 400 jobs that are expected to be filled internally, drawn equally from employees in Golden and Milwaukee. The specific site will be chosen in the next few months, Green said, and jobs will start moving next year.

Chicago Mayor Richard M. Daley said the move reinforces Chicago's commitment to businesses both large and small.

"The company's decision to locate its headquarters here strengthens our reputation as a world-class city in which to conduct business and confirms that Chicago is a great place to live, work and raise a family," he said.

MillerCoors said early on it wanted to settle in a neutral site, but officials pledged to maintain a strong presence in each hometown. The company said Tuesday it will invest $50 million in the Milwaukee brewery to increase production levels, and will pour another $100 million into the Golden plant to reconfigure its operations.

That offered a small measure of solace to Wisconsin Gov. Jim Doyle. He said he was disappointed that Milwaukee wasn't a candidate but that the state remains committed to the company.

"We will continue to work with the new MillerCoors to make sure that Milwaukee will always be the home of Miller beer," he said.

MillerCoors began operation as a combined entity July 1, a day after the companies announced the closing transaction to combine their U.S. and Puerto Rico operations.

The deal was aimed at helping them compete against Anheuser-Busch Cos., which has about half the U.S. market. Anheuser-Busch agreed this week to be acquired by Belgian-based InBev SA for $52 billion.

Green said the acquisition wouldn't affect MillerCoors' long-term strategies.

"We're not going to change a thing that we're doing," he said. "We remain focused on creating the best beer company in America."